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jonny [76]
3 years ago
13

The treasurer of a major U.S. firm has $36 million to invest for three months. The interest rate in the United States is .24 per

cent per month. The interest rate in Great Britain is .30 percent per month. The spot exchange rate is £.635, and the three-month forward rate is £.639.
What would be the value of the investment if the money is invested in the U.S and Great Britain?

a. U.S. ___ $ b. Great Britain ___ $
Business
1 answer:
Hunter-Best [27]3 years ago
8 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
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Assume that you have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR
hodyreva [135]

Answer:

C) 0.5 USD

Explanation:

Swap is an arrangement in which two parties exchange their interest rates for mutual benefit. One party may receive fixed rate and other will receive floating rate based on LIBOR. In the given scenario the swap agreement was originated when the LIBIOR was 3%. The fixed rate was set to be at 4% so the net gain at the time of inception was 1%. When LIBOR increased after six month the net gain declined to only 0.5%.

4 0
2 years ago
Suppose the comparative balance sheets of Windsor, Inc. are presented here. WINDSOR, INC. Condensed Balance Sheet May 31 ($ in m
umka2103 [35]

Answer:

since there is not enough room here, I prepared the comparative balance sheets on an excel spreadsheet.  

Explanation:

WINDSOR, INC.

May 31  2017 2016

($ in millions)

Assets

Current Assets $9,520 $8,720

Property, plant, and equipment (net) $2,010 $1,870

Other assets $1,550 $1,610

Total assets $13,080 $12,200

Liabilities and Stockholders' Equity

Current Liabilities $3,210 $3,320

Long-term liabilities 1,210 1,290

Stockholders' equity 8,660 7,590

Total liabilities and stockholders' equity $13,080 $12,200

Download pdf
4 0
3 years ago
A student wants to determine what type of cereal his classmates like best. he buys three of his favorite puffed rice cereals and
FrozenT [24]

The answer is D The students conclusion shows experimental bias

3 0
3 years ago
When trying to assess your economic well-being you should:
Alex_Xolod [135]

Answer:

The correct answer is A

Explanation:

Economic well being is described or states as having the future as well as the present financial security. It involves the ability to make the choices of the economic and have a sense of satisfaction, security and the personal fulfillment with the one's employment pursuit and the personal finances.

So, in order to assess or evaluate the economic well being, one should compare the situation of his or her economic well being with that of most of the people who are alive today.

5 0
2 years ago
A retail store's Sales Account totals $223,000 which includes both the sales revenue and the sales tax on the sales. If the sale
ella [17]

Answer:

$10,619.05

Explanation:

When sales is made at a tax rate of 5%, the entries to be posted in the proportion of the transaction amount

Dr Cash/ Accounts receivable 105%

Cr Sales revenue 100%

Cr Sales tax 5%

As such, if Sales Account totals $223,000 which includes both the sales revenue and the sales tax on the sales, it means that the accounts contains 105%, as such, the sales tax which is the amount owed the taxing agency

= 5/105 * $223,000

= $10,619.05

3 0
3 years ago
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