Your firm, which is based in the US, has a €10,000 payable due in 1 year. You are considering hedging against FX risk by purchasing a call option with an exercise price of $1.05/€ and a premium of $0.03/€. The current one-year forward rate is €0.98/$, and the one-year US interest rate is 1.5%. If the forward rate is best predictor of the future spot rate, the firm to exercise its option given the information available to it at t=0.

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)

Uknow what i love about i ask a dumb question it is immediately answered but when i ask a real question it take like an hour to get answered

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.