Business, 13.12.2019 00:31 jeronimo18

Stock in daimler ag, the famous german automobile manufacturer, trades on both the frankfurt stock exchange in germany and on the new york stock exchange. on the börse frankfurt, daimler closed at a price of €54.34 on wednesday, march 5, 2008. on the same day, daimler closed in new york at $83.55 per share. to prevent arbitrage trading between the two exchanges, the shares should trade at the same price when adjusted for the exchange rate. the $/€ exchange rate on march 5 was $1.5203/€1.00. thus, €54.34 × $1.5203/€ = $82.61, while the closing price in new york was $83.55. the difference is easily explainable by the fact that:
a. transactions costs exceeded the price difference, so no arbitrage was possible even for market makers.
b. no one noticed the arbitrage that day, but in a day or so the opening price will adjust.
c. the new york market closes several hours after the frankfurt exchange, and thus market prices or exchange rates had changed slightly.
d. none of the above

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 13:30

Suppose you want to know if more technical service calls are made to homes with cable television or with satellite dish television. should you use frequencies or relative frequencies to make the comparison? why?

Answers: 1

Answer

Business, 21.06.2019 14:20

Xt year baldwin plans to include an additional performance bonus of 0.25% in its compensation plan. this incentive will be provided in addition to the annual raise, if productivity goals are reached. assuming the goals are reached, how much will baldwin pay its employees per hour?

Answers: 2

Answer

Business, 21.06.2019 21:00

Captain john's yachts, inc., located in fort lauderdale, florida, rents three types of ocean-going boats: sailboats, cabin cruisers, and captain john's favorite, the luxury yachts. captain john advertises his boats with his famous "you rent"we pilot" slogan, which means that the company supplies the captain and crew for each rented boat. each rented boat has one captain, of course, but the crew sizes (deck hands, galley hands, etc.) differ. the crew requirements, in addition to a captain, are one for sailboats, two for cabin cruisers, and three for yachts. ten employees are captains, and an additional 18 employees fill the various crew positions. currently, captain john has rental requests for all his boats: four sailboats, eight cabin cruisers, and three luxury yachts. if captain john's daily profit contribution is $50 for sailboats, $70 for cruisers, and $100 for luxury yachts, how many boats of each type should he rent?

Answers: 2

Answer

Business, 22.06.2019 10:00

mary's baskets company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. there are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. the company keeps no work-in-process inventory. what amount of sales revenue will be reported on the 2019 budgeted income statement?

Answers: 2

Answer

You know the right answer?

Stock in daimler ag, the famous german automobile manufacturer, trades on both the frankfurt stock e...

Questions