The Business and Financial Times currently has given the following quotes between ¢:$ as: Spot = 0.7200 – 0.7250 1 month forward = 0.0014 – 0.0016 premium 1 month forward rate = 0.7186 – 0.7234 i. Your company currently has GH¢32,500 and wishes to import goods from America. Assuming you are the financial advisor of such company, what will be your advice? ii. Should they import now or a month’s time, assuming prices will remain constant?
a) The Business and Financial Times currently has given the following quotes between ¢:$ as:
Spot = 0.7200 – 0.7250
1 month forward = 0.0014 – 0.0016 premium
1 month forward rate = 0.7186 – 0.7234
i. Your company currently has GH¢32,500 and wishes to import goods from America. Assuming you are the financial advisor of such company, what will be your advice?
ii. Should they import now or a month’s time, assuming prices will remain constant?
b) Agency problem is pervasive and exists in practically every organization whether a business, church, club, or government. Organizations try to solve it by instituting measures but no organization can remedy it completely.
How would you analyze this statement within the context of a limited liability company and what are the possible remedies to this problem?
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