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(a) ABC Company Ltd purchased 5000 cocoa futures contract at a price of $150
per contract. As part of the contract, ABC was required to deposit $10 per
contract initially in their account with the maintenance margin set at $5 per
contract. If the price per contract falls to $142 overnight, what action will the
exchange require ABC to undertake?
b) Emmanuella purchased a put option on British pounds for $.06 per unit. The strike price
was $1.85, and the spot rate at the time the pound option was exercised was $1.69.
Assume there are 31,250 units in a British pound option. What was Emmanuella’s net
profit on the option?
c) Caleb sold a put option on Canadian dollars for $.05 per unit. The strike price was $.85,
and the spot rate at the time the option was exercised was $.92. Assume Caleb
immediately sold off the Canadian dollars received when the option was exercised. Also
assume that there are 50,000 units in a Canadian dollar option. What was Caleb’s net
profit on the put option?
Ghana’s inflation is forecasted to be 10.2% over the coming year whilst that of South
Africa is forecasted to be 6.5%. The current exchange rate between Ghana Cedi and the
South African Rand is 0.32 ZAR per 1 GHS.
a) How should we quote the exchange rate between Ghana Cedi and the South
African Rand (ZAR) in a year’s time to avoid arbitrage?
b) A Ghanaian company is importing goods worth ZAR 20m in a year’s time, how
much GHS will the company require to import the goods?
c) If the actual rate at the end of the year is 0.35 ZAR per 1GHS, what is the
absolute forecast error for the forecast in (a)?
Mahesh wants to start his business and for that he decides that he will take loan for
Rupees 7 Lakhs from the Bank of Baroda. He also decides to use his saving worth 3 lakhs
in the bank account to start the business. Discuss how these two transactions will be
recorded in the books of accounts by passing the relevant journal entries? How these
transactions will be reflected in the Books of accounts (that’ is in the financial statements)?
Lastly, conclude your answer by stating the applicability of which accounting
assumption/s you did the above mentioned accounting treatment/ recognition and
presentation in the books of accounts.
"Please Only Give Me The Reference Of The Answer"
Xolisile and Xolani are twins. To reward them for passing matric well, their parents gave them
R20 000,00 each. Each one of them decided to invest three quarters of their money for a period of
three years. Xolisile invested her money at a simple interest rate of 6,5% per annum. Xolani invested
her money at an interest rate of 6,5% per annum, compounded annually. What is the difference
between the values of the two investments at the end of the period?
Mr Mahlangu invests R20 000,00 to pay for lobola. After 48 months he receives R65 000,00. The
interest on the investment is compounded quarterly. Determine the yearly interest rate at which the
money was invested. Give your answer as a percentage, rounded to two decimal places.
Coupon rate: 9,75%
Yield to maturity: 11,4% per year
Maturity rate date: 15 April 2046
Settlement date: 29 November 2021
The accrued interest is
If the NPV (net present value) of a shop is R195 000 and the profitability index is 1,2437, the initial investment is the is?
If the average rate of return is 8,42%, then the original investment ( rounded off to the nearest R 1000) was
An investment with an initial outlay of R500 000 generates five successive annual cash inflows of R75 000,R190 000,R40 000,R150 000 and R180 000respectively. The internal rate of return (IRR) is
