subject
Business, 28.10.2019 23:31 dozsyerra

Suppose that the annual interest rate is 2.0 percent in the united states and 4 percent in germany, and that the spot exchange rate is $1.60/€ and the forward exchange rate, with one-year maturity, is $1.58/€. assume that an arbitrager can borrow up to $1,000,000 or €625,000. if an astute trader finds an arbitrage, what is the net cash flow in one year? multiple choice $7,000 $238.65 $46,207 $14,000

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 09:00
What should a food worker use to retrieve ice from an ice machine?
Answers: 1
question
Business, 22.06.2019 10:30
Perez, inc., applies the equity method for its 25 percent investment in senior, inc. during 2018, perez sold goods with a 40 percent gross profit to senior, which sold all of these goods in 2018. how should perez report the effect of the intra-entity sale on its 2018 income statement?
Answers: 2
question
Business, 22.06.2019 13:40
Randall's, inc. has 20,000 shares of stock outstanding with a par value of $1.00 per share. the market value is $12 per share. the balance sheet shows $42,000 in the capital in excess of par account, $20,000 in the common stock account, and $50,500 in the retained earnings account. the firm just announced a 5 percent (small) stock dividend. what will the balance in the retained earnings account be after the dividend?
Answers: 1
question
Business, 22.06.2019 16:00
In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.
Answers: 1
You know the right answer?
Suppose that the annual interest rate is 2.0 percent in the united states and 4 percent in germany,...
Questions
question
Mathematics, 25.02.2021 09:40
question
Mathematics, 25.02.2021 09:40
question
Mathematics, 25.02.2021 09:40
question
Mathematics, 25.02.2021 09:40
question
Mathematics, 25.02.2021 09:40
question
Computers and Technology, 25.02.2021 09:40