Answer:
Explanation:
1st strategy : Selling pound forward
The spot rate of the pound is quoted at $1.51.
The one-year forward rate exhibits a 2.65% premium.
The one-year forward rate = 1.51 ( 1+ 0.0265)
= $ 1.55
Dollars received = 100000 * 1.55 = $155000
2nd strategy : Buying put option
The strike price of put = $1.54
premium on option is $.03
Amount received per option = $ 1.54 - $ 0.03 =$1.51
Total Dollars received = 100000* 1.51 = $ 151000
the best possible hedging strategy is Selling pound forward and receiving $155000
Answer: d. cause businesses to increase their focus on nonprice aspects of their promotional message.
Explanation: The internet has made it possible for shopping to be done online. Businesses will most likely increase their focus on nonprice aspects of their promotional message as a result of the technology. This would be largely due to an increase in price competition as more and more consumers have instant access to prices from all around the world and in response to this, nonprice competition is more likely to be on the rise.
Answer:
The business cease to exists unless sold or taken over by Joe's heirs.
Explanation:
Sole proprietorship is a term that describes the business enterprise which is owned or run by just one person known as the sole trader. In other words, sole proprietorship is a one man's business.
One of the major drawbacks of this kind of business is the fact that when a sole proprietor is sick or incapacitated, his/her business would suffer or cease to exist unless he/she sells it or allows family members (heirs) to take over its management or ownership.
Answer:
Threat of substitute products and services
Explanation:
In simple words, The threat of alternatives or substitutes can be defined as the problem of existence of several other goods from outside a sector that a consumer might buy. An industry's economic framework is challenged as alternative goods are present that offer a similarly similar match of advantages at a reasonable price.
Thus, from the above we can conclude that the given case depicts threat of substitutes.
