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kramer
3 years ago
10

Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR). Bank B quotes a bid rate of $0.306

and an ask rate of $0.310 for the ringgit. What will be the profit for an investor that has $500,000 available to conduct locational arbitrage
Business
1 answer:
Artemon [7]3 years ago
5 0

Answer: $1639.3

Explanation:

From the question, we are informed that Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR) and that bank B quotes a bid rate of $0.306 and an ask rate of $0.310 for the ringgit.

The profit for an investor that has $500,000 available to conduct locational arbitrage goes thus:

Purchasing Malaysian ringgit (MYR) from bank A at the ask rate will be:

= $500,000/$0.305

= 1,639,344.3

Selling the Malaysian ringgit (MYR) at bank B based on the ask rate will be:

= 1,639,344.3 × 0.306

= $501,639.3

The profit for an investor that has $500,000 available to conduct locational arbitrage will be:

= $501,639.3 - $500,000

= $1639.3

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Answer:

b.use the S-2 employee

Explanation:

Calculation for the the most cost-effective solution

S-1 S-2 S-3

Time for 1 unit (in minutes) 30 24 21

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(60/30= 2)

(60/24=2.5)

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Wages per hour $ 16.00 $ 19.00 $ 22.00

Wages per/ unit $ 8.00 $7.60 7.70

($ 16.00/2=$8)

($ 19.00/2.5=$ 7.60)

($ 22.00/2.857142857=$ 7.70)

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S-1 $ 8.00 III

S-2. $7.60 I

S-3 7.70 II

Therefore based on the above Calculation the most cost-effective solution will be to use the S-2 employee

4 0
3 years ago
How can you maintain a balance between high-risk and low-risk investments?
ch4aika [34]
"By diversifying your investments" is the way among the choices given in the question that you can <span>maintain a balance between high-risk and low-risk investments. The correct option among all the options that are given in the question is the first option or option "A". I hope the answer helps you.</span>
7 0
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Answer:

The company should buy the units because it will save $10,000.-

Explanation:

Giving the following information:

Make in-house:

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Buy:

Unitary cost= $15

<u>First, we will determine the total cost of each option:</u>

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True

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3 years ago
which account option features a note issued by a bank to a depositor for funds placed for a set period? certificate of deposit c
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<h3>What is a certificate of deposit (CD)?</h3>

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Read more on certificate of deposit here: brainly.com/question/28190396

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6 0
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