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VMariaS [17]
3 years ago
6

If one-year nominal interest rate in the U.S. is 3%, while the one-year nominal interest rate in Australia is 5%. The spot rate

of the Australian dollar is $.96. Interest Parity is held. You will need 5 million Australian dollars in one year. Today, you purchase a one-year forward contract in Australian dollars. How many U.S. dollars will you need in one year to fulfill your forward contract?
Business
1 answer:
Mariana [72]3 years ago
3 0

Answer:

to get 5,00,000 australian dollar at the forward rate we are goign to need 4,704,000 US dollars

Explanation:

spot x (1 + (US rate - Australia rate) x time)

0.96 x (1+(0.03-0.05)x1 year) =

0.96 x 0.98 = 0.9408 forward exchange rate

$5,000,000 Australian Dollar * 0.9408 = 4,704,000 US dollars

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3 years ago
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Find the attachments for complete answer

8 0
3 years ago
Which entry records the investment of cash by John, owner of a sole proprietorship?
mote1985 [20]
The answer is: D - Debit Cash; credit John, Capital.

Explanation:

The entry records the investment of cash by John, owner of a sole proprietorship is: Debit Cash; credit John, Capital.
4 0
3 years ago
You are trying to concentrate during an examination but you get distracted by the sound of another student tapping her pencil on
sergejj [24]

Answer:

a.  Selective attention/comprehension

Explanation:

Selective attention/comprehension -

It refers to some specific external factors , which alerts someone's attention , is referred to as Selective attention/comprehension .

The factors can be some external factors like some specific words , activities , situation etc.

Hence , from the given scenario of the question ,

The students gets distracted by the sound of the pencil on desk .

The correct answer is a.  Selective attention/comprehension .

3 0
3 years ago
Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. The initial margi
GrogVix [38]

Answer:

a.38%

b. No because the margin is above the requirement at 38%

c.-150%

Explanation:

a.

1000 shares*$40 per share = 40000

margin requirement is 50% so equity = 20000

1 year later price increase to 50

$1000 shares*$50 per share = 50000

dividend = $2*1000 = 2000

margin = 20000/52000 = 38%

b.

No because the margin is above the requirement at 38%

c.

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Rate of return = (-10000 -20000)/20000 = -150%

3 0
3 years ago
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