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scoundrel [369]
3 years ago
8

Assume interest rate parity exists. If the spot rate on the British pound is $2 and the 1-year British interest rate is 7 percen

t, and the 1-year U.S. interest rate is 11 percent, what is the pound's forward discount or premium?
Business
1 answer:
Aleks04 [339]3 years ago
5 0

Answer:

The pound's forward discount or premium is 3.74%

Explanation:

The current spot rate is 1 Pound = $2

The interest rate parity exists, then:

The forward rate:

1 Pound*1.07 = $2*1.11

1.07 Pound = $2.22

1 pound = $2.0748

The Premium in Pound = $2.0748 - $2

                                      = $0.0748

Premium rate = $0.0748/$2*100

                       = 3.74%

Therefore, The pound's forward discount or premium is 3.74%

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Beginning raw materials inventory $ 15,200 Raw material purchases 60,000 Ending raw materials inventory 16,600 Beginning work in
garik1379 [7]

Answer:

$58,600

Explanation:

Calculation for what Healey Company's direct materials used for the year is:

Using this formula

Direct materials used for the year=Beginning Raw Materials + Raw Materials Purchased - Ending Raw Materials

Let plug in the formula

Direct materials used for the year = $15,200 + $60,000 - $16,600

Direct materials used for the year= $58,600

Therefore Healey Company's direct materials used for the year is:$58,600

3 0
3 years ago
Which career testing tool is one of the few assessments with right and wrong answers?.
mario62 [17]

Ability Placement Survey career testing tool is one of the few assessments with right and wrong answers.

A career is an individual's metaphorical "journey" through study, work, and other aspects of life. There are several ways to define a career and the terms are used in different ways.

pursues a career for life, especially one that requires special training. He longed for a career as a lawyer. Resume or general course of action for a person or period of life, like occupation or endeavor: His career as a soldier ended in a truce. , means working as an electrician, cashier, teacher, or hairdresser. But career also has another definition.

Learn more about career here:brainly.com/question/6947486
#SPJ4

3 0
2 years ago
The Presidential Cabinet consists of _____.
valkas [14]
The vice president and some other people i think<span />
7 0
3 years ago
Instruments had retained earnings of $ 390 comma 000 at December​ 31, 2017. Net income for 2018 totaled $ 220 comma 000​, and di
VashaNatasha [74]

Answer:

The retained earnings should Quartz report at December​ 31, 2018 is $570,000

Explanation:

In this question, we apply the retained earnings equation which is shown below:

Ending retained earnings balance = Beginning retained earning balance + net income - dividend paid

= $390,000 + $220,000 - $40,000

= $570,000

The net income should be added while dividend should be deducted for finding out the ending retained earnings balance

3 0
3 years ago
]To estimate the percentage of defects in a recent manufacturing​ batch, a quality control manager at Daimler minus Chrysler sel
krek1111 [17]

Answer:

Answer is option A, i.e. systematic sampling.

Explanation:

Systematic sampling is the type of probability sampling method of selection of samples out of the given group of homogenous nature. In this method, every Kth sample is selected until the required amount is obtained. Here, Chrysler selects every 16th van until he is successful in obtaining the 80 vans. Thus, Chrysler is using a systematic sampling method here.

3 0
3 years ago
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