The deductible is the amount a person must pay before their insurance will start to pay. For instance, say you have a $1,000 deductible on your car and you have a wreck that causes $3,000 worth of damage. the driver would have to pay the $1,000 first and then the insurance will help cover the other $2,000 at the rate the policy stipulates.
As for pricing, the insurance policies with higher deductibles (meaning the subscriber pays more for losses), the insurance premium would be cheaper than those policies with a smaller deductible.
Hey I don't see a picture or anything can you please post the picture
Answer:
-5.95%
Explanation:
A = P(1+r)^n
A is the auction price at which the sculpture was sold = $10,331,500
P is the price the sculpture was purchased = $12,417,500
n is the time interval between the year of sales and year of purchase
10,331,500 = 12,417,500(1+r)^3
(1+r)^3 = 10,331,500/12,417,500
(1+r)^3 = 0.832
1+r = (0.832)^1/3
1+r = 0.9405
r = 0.9405 - 1 = -0.0595 = -5.95%
Bonds have a maturity date, are perpetual, and pay a coupon rate.
Answer:
$15.43
Explanation:
Following actions are required for triangular arbitrage:
Available: $ 10,000
Buy sterling pound @ 1 $ = 1.62 pounds and receive pounds 6172.84 upon conversion.
Now, sell these pounds and purchase NZ $ at the rate :
1 pound = NZ $ 2.95 and receive NZ$ 18209.87
Now, reconvert the above proceeds into US $ at the rate
1 NZ $ = $0.55 i.e sell NZ $ at this rate and receive US $ 10,015.4285
Hence profit from implementing triangular arbitrage is $10,015.43 - $10,000
= $15.43
Arbitrage refers to the prospect of earning a profit by utilizing the mispricing in two different financial markets. An arbitrageur never uses his own funds and always borrows.
Arbitrage works only in the scenario wherein the interest rate purchase parity (IRPT) does not hold good.
The strategy of arbitrage is best explained as "Buy at low price and sell at a high price".