Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
SA Hydraulics (Pty) Ltd is a South African import and export company based in Edenvele that supplies hydraulics equipment, oil hydraulics parts, and accessories. On
SA Hydraulics (Pty) Ltd is a South African import and export company based in Edenvele that supplies hydraulics equipment, oil hydraulics parts, and accessories. On August 2023, the company exported hydraulic accessories for an amount of R350 280 to British Hydraulics (Pty) Ltd when one rand (R) was worth 0.043 pounds (£). After 90 days, on 30 October 2023, British Hydraulics Ltd settled its account with SA Hydraulics (Pty) Ltd paying pounds that were equivalent to the original invoice, at that time, the exchange rate was £0.042/R. QUESTION 33 Assume you are the company treasurer of SA Hydraulics (Pty) Ltd. Based on an analysis of operations of S Hydraulics (Pty) Ltd, you identify that the company is exposed to ..., which can be mitigated by taking out a .... a. translation risk; currency option b. unsystematic risk; foreign currency swap c. transaction risk; forward exchange contract (FEC) d. economic risk; future currency contract
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started