Question
In: Accounting
An Omani car dealer enters into a contract with German manufacturing company for purchase of 25...
An Omani car dealer enters into a contract with German
manufacturing company for purchase of 25 cars on 1st February 2019
payment to be made within one month from the date of delivery. The
exchange rate in spot market on the date of transaction is OMR
0.43556 = 1 EUR. The total cost of 25 cars amounts to Euro 625000.
The car was delivered on 1st June 2019. Assuming that the forward
contract price of OMR is at a forward premium of 5% for 1st July
and the spot rate of OMR is expected to appreciate by 8% against
Euro by July 2019.
a) Find out the amount of OMR to be paid by the dealer if he
goes for forward contract. (
b) Find out the amount of OMR to be paid by the dealer if he
goes for actual price in July
c) If the dealer has an option to buy the EURO in February at
5% appreciated value of OMR from February spot rate with 5 %
premium, should he accept the option. If he accepts the options
find out the amount of OMR paid by him and the difference between
option price and actual price.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On July 1, an American auto dealer enters into a contract to purchase 25 British sports...
On July 1, an American auto dealer enters into a contract to
purchase 25 British sports cars with payment to be made in pounds
on November 1. Each car costs 40,000 pounds. The dealer is
concerned that the pound will strengthen over the next few months.
The dealer plans to trade in December pound futures contracts. The
December pound futures price is $1.300 per pound. Each contract is
for delivery of 62,500 pounds.
The spot rate on November 1 is...
An Omani dates dealer enters into a contract with Indian importer to deliver INR 100000 worth...
An Omani dates dealer enters into a contract with Indian
importer to deliver INR 100000 worth of dates on 1st May 2019
payment to be received within one month from the date of delivery.
The exchange rate in spot market on the date of transaction is INR
184.254 = 1 OMR. The dates were delivered on 1st June 2019.
Assuming that the forward contract price of INR is at a forward
discount of 5% for 1st July and the spot...
An Omani dates dealer enters into a contract with Indian importer to deliver INR 100000 worth...
An Omani dates dealer enters into a contract with
Indian importer to deliver INR 100000 worth of dates on 1st May
2019 payment to be received within one month from the date of
delivery. The exchange rate in spot market on the date of
transaction is INR 184.254 = 1 OMR. The dates were delivered on 1st
June 2019. Assuming that the forward contract price of INR is at a
forward discount of 5% for 1st July and the spot...
German company and the swap dealer pays and receives under the swap contract that satisfies the...
German company and the swap dealer pays and receives under the
swap contract that satisfies the following:
The same swap dealer is involved in this currency swap with
the US company and the German company.
The US company’s net borrowing cost is 5.2% p.a. on $ and the
German company’s net borrowing cost is 6.1% p.a. on €.
The swap dealer pays and receives $ at 5.2% p.a.
(b) Suppose the US company has entered into a...
An exporter in India exports fruits to Oman enters into a contract with Omani importer to...
An exporter in India exports fruits to Oman enters
into a contract with Omani importer to deliver OMR 10000 worth of
fruits on 1st June 2019 payment to be received within one month
from the date of delivery. The exchange rate in spot market on the
date of transaction is INR 186.254 = 1 OMR. The fruits were
delivered on 1st July 2019. Assuming that the forward contract
price of INR/OMR is at a forward discount of 7% for 1st...
An exporter in India exports fruits to Oman enters into a contract with Omani importer to...
An exporter in India exports fruits to Oman enters into a
contract with Omani importer to
deliver OMR 10000 worth of fruits on 1st June 2019 payment to
be received within one month
from the date of delivery. The exchange rate in spot market on
the date of transaction is INR
186.254 = 1 OMR. The fruits were delivered on 1st July 2019.
Assuming that the forward
contract price of INR/OMR is at a forward discount of 7% for
1st...
An importer in India imports minerals from Oman enters into a contract with Omani exporter to...
An importer in India imports minerals from Oman enters into a
contract with Omani exporter to deliver OMR 20000 worth of minerals
on 1st September 2019 payment to be received within one month from
the date of delivery. The exchange rate in spot market on the date
of transaction is OMR0.00555=1 INR. The minerals were delivered on
1st November 2019. Assuming that the forward contract price of
OMR/INR is at a forward discount of 8% for 1st December and the...
Description of problem domain: the customer goes to the car dealer to purchase a car. First,...
Description of problem domain: the customer goes to the car
dealer to purchase a car. First, the customer works with the
salesperson who lists available cars from the dealer’s stock. If
the customer selects a car, he may test-drive the car. If he feels
satisfied with the car, he will negotiate the price with the
salesperson. The customer may bring his old vehicle for trade-in.
If the customer and the salesperson agree upon the final price
(including the trade-in price...
a) A telecommunications company enters into a contract with a customer. Under the contract, the company...
a) A telecommunications company enters into a contract with a
customer. Under the contract, the company promises to provide to
the customer 4 GB data, 300 minutes of talk time, and 500 texts for
$36.
Required:
Briefly explain how the telecommunications company should
account for the contract under NZ IFRS 15. You need to refer to the
relevant requirements but not to any specific paragraph of NZ IFRS
15.
a) A telecommunications company enters into a contract with a customer. Under the contract, the company...
a) A telecommunications company enters into a contract with a
customer. Under the contract, the company promises to provide to
the customer 4 GB data, 300 minutes of talk time, and 500 texts for
$36.
Required:
Briefly explain how the telecommunications company should
account for the contract under NZ IFRS 15. You need to refer to the
relevant requirements but not to any specific paragraph of NZ IFRS
15.
b) A company sells mobile phone sets for $99 each. The...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Journal article summary on inter-group conflict Peer Reviewed Journal article from past 3 years. Please include...
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
ADVERTISEMENT