Suppose that the current spot exchange rate is €0.80/s and the three-month forward exchange rate is €0.7813/s. thethree-month interest rate is 5.60 percent per annum in the united states and 5.40 percent per annum in france. assumethat you can borrow up to $1,000,000 or €800,000.a. show how to realize a certain profit via covered interest arbitrage, assuming that you want to realize profit in terms ofu. s. dollars. also determine the size of your arbitrage profit. b. assume that you want to realize profit in terms of euros. show the covered arbitrage process and determine thearbitrage profit in euros.

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Which of the following is an example of a production quota? a. the government sets an upper limit on the quantity that each dairy farmer can produce. b. the government sets a price floor in the market for dairy products. c. the government sets a lower limit on the quantity that each dairy farmer can produce. d. the government guarantees to buy a specified quantity of dairy products from farmers.

You operate a small advertising agency. you employ two secretaries, a graphic designer, three sales representatives, and an office coordinator. 1. what types of things would you consider when determining how to compensate each position? describe two (2) considerations. 2. what type of compensation plan would you use for each position?