Brazilian real (the currency of Brazil) to US dollar exchange rate (BRLUSD) is currently quoted at 0.2570. The one-year US risk-free rate is 1% and the one-year Brazil risk-free rate is 14% (both expressed with continuous compounding). The current quoted one-year forward BRLUSD rate is 0.2300. Based on the above information, solve the following
1. What is correct about the spot BRLUSD exchange rate?
A) Brazilian real is currently worth 0.2570 US dollar.
B) US dollar is currently worth 0.2570 Brazilian real.
C) 3.891 US dollar is currently worth 1 Brazilian real.
D) None of the above
2. Theoretically, what should be the 1-year forward BRLUSD rate?
A) 0.1982
B) 0.2257
C) 0.2300
D) 0.2570
3. Which one is an arbitrage strategy that could be taken right now?
A) Borrow USD at 1% interest rate then convert to BRL right now; invest BRL for one year at 14%; after one year, convert BRL back to USD.
B) Borrow BRL at 14% interest rate then convert to USD right now; invest USD for one year at 1%; after one year, convert USD back to BRL.
C) Short the 1-year forward BRLUSD contract at 0.2300; buy back one-year later at whatever the spot rate that time.
D) None of the above

Selected t-account balances for bloomfield company are shown below as of january 31, which reflect its accounting adjustments. the firm uses a calendar-year accounting period, but prepares monthly accounting adjustments.suppliesjan. 31 bal. 1,800 1,800 jan. 31 bal.supplies expensejan. 31 bal. 1,920 1,148 jan. 31 bal.prepaid insurancejan. 31 bal. 1,148 1,148 jan. 31 bal.insurance expensejan. 31 bal. 164 164 jan. 31 bal.wages payablejan. 31 bal. 1,400 1,400 jan. 31 bal.wages expensejan. 31 bal. 6,400 6,400 jan. 31 bal.truckjan. 31 bal. 17,376 17,376 jan. 31 bal.accumulated depreciation -truckjan. 31 bal. 5,068 5,068 jan. 31 bal.a. if the amount in supplies expense represents the january 31 adjustment for the supplies used in january, and $1,240 worth of supplies were purchased during january, what was the january 1 beginning balance of supplies? $answerb. the amount in the insurance expense account represents the adjustment made at january 31 for january insurance expense. if the original insurance premium was for one year, what was the amount of the premium, and on what date did the insurance policy start? amount of the premium $answerthe policy began on answerjune 1july 1august 1september 1october 1november 1 of the previous year.c. if we assume that no beginning balance existed in either in either wage payable or wage expense on january 1, how much cash was paid as wages during january? $answerd. if the truck has a useful life of four years (or 48 months), what is the monthly amount of depreciation expense, and how many months has bloomfield owned the truck? answermonths