The current exchange rate for the Canadian dollar is $0.91US. The inflation rate in the U.S. is 2.5% while it is 3.5% in Canada. What is the expected spot rate in two years?

You are a gold miner and think that market prices are likely going to fall. In order to reduce your exposure to the price fluctuation (or to reduce losses), you could __________ :

Kojack Film needs silver to make photographic film. To ensure that they will have an ample supply of silver at a reasonable price, the company purchases a silver mine. This is an example of a(n):

Carsen's Centre Inc. has $2.85 million in net working capital. The firm has fixed assets with a book value of $31.67 million and a market value of $33.98 million. Krystal Corporation is buying Carsen's Centre Inc. for $38.40 million in cash. The acquisition will be recorded using the purchase accounting method. What is the amount of goodwill that Krystal Corporation will record on its statement of financial position, as a result of this acquisition?

Firm DK has 10,000 outstanding shares each for $25, and firm OS has 7,500 outstanding shares each for $10. Neither firm has any debt. Firm DK can acquire firm OS for $82,500 in the form of cash payment. The synergy value of the deal is expected to be $12,500. What will the price per share be for the post-merger firm?

Aaron purchased a call on 35,000 bushels of corn with a strike price of $2.10 per bushel. On the expiration date, the corn was selling at $1.98 per bushel. Option contracts on corn are based on 5,000 bushels. Ignore the cost of the call and all transaction costs. What is the Aaron’s payoff on his call contract?

Big Tree, Inc. is a Canadian company. Currently, they are considering an investment project in Pakistan. If they use the foreign currency approach, they will need to: 

Monique grows and exports cocoa. Her crop was ruined in a storm, so she now needs to purchase 20 tons of cocoa in three months to meet prior contractual obligations. Monique wants to hedge against cocoa price changes. Each futures contract is for 10 metric tons. The current quote for the contract is 1,447 per ton. Monique should _____ 2 futures contracts with a total contract value of ____________.

An agreement to exchange currencies at some point in the future using an agreed-upon exchange rate is called a ____________ trade:

A cash payment made by a firm to its owners in the normal course of business is called a(n):