Answer:
Increases; More
Explanation:
Given that,
Current exchange rate:
$1 = 1 euro
Expected exchange rate:
$1 = 1.20 euros
The above exchange rate indicates that there is an appreciation in value of dollar and a depreciation in the value of euro. An appreciation of a dollar will lead to increase the demand for dollar because people expect that holding dollar is more profitable than euro.
With the expected exchange rate, a europian resident have to pay more for per dollar purchase in future as compared to the current exchange rate.
Answer:
$75.01
Explanation:
Given:
- Call price (C): $4
- Put price (P): $2.5
- risk-free rate (r): 2% = 0.02
- Time: 1 year
- Exercise price (K): $75
Let Share price:
As per put-call party, we have the following equation:
- C + K = P+
<=> = C + K - P
<=> = 4 + 75* - 2.5
<=> = 1.5 + 73.51 = $75.01
So the the stock price is $75.01
Answer:
Contraction
Explanation:
The business cycle refers to the fluctuations that happen in an economic activity over time. This cycle has 4 stages that are:
-Expansion is when the economy grows and employment is higher.
-Peak is a transition between expansion and contraction and it is a point in which the economy reaches its highest output.
-Contraction is a stage in which growth stops and unemploymetnt rises.
-Trough is a stage in which the economy gets to its lowest point before a rise.
According to this, the answer is that in the context of the business cycle, Bruslon is most likely going through a period of contraction because there is an economic downturn that forced Loger's to lay off many employees.