1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vazorg [7]
4 years ago
15

An exchange rate is 0.7000 and the six- month domestic and foreign risk- free interest rates are 5% and 7% (both expressed with

continuous compounding). What is the six- month forward rate
Business
1 answer:
aalyn [17]4 years ago
3 0

Answer:

0.693

Explanation:

Given that

Exchange rate = 0.7

Interest Rates = 5% and 7%

The calculation of six-month forward rate is shown below :-

= Spot Rate x e^ (Domestic Rate - Foreign Rate) x Domestic Rate

= 0.7 x e^ ((0.05 - 0.07) x 0.05)

= 0.7 x e^ -0.001

= 0.7 x 0.99

= 0.693

Hence, the six-month forward rate is 0.693. we simply find the six moth rate by applying the formula.

You might be interested in
​Long-run growth in GDP is determined by A. labor​ productivity, capital, and government expenditures. B. ​consumption, investme
amm1812

​Long-run growth in GDP is determined by​ capital, labor​ productivity, and technology progress is affected by private property rights, investment in capital, entrepreneurship.

C) capital, labor productivity, and technology

A) Private property rights,

B) Investment in capital,

E) Entrepreneurship

<u>Explanation:</u>

The long run growth is considered as the increase in the value of goods produced in the market over a period of time. In macroeconomics, since quite a while ago run development is the expansion in the market estimation of merchandise and enterprises created by an economy over some undefined time frame.

The since quite a while ago run development is dictated by the level of progress in the genuine total national output (GDP). The goods and services produced in the long run and the long run growth is determined by the change in the percentage of Real GDP.

8 0
3 years ago
Firm X just paid​ $5/share dividend. We expect the dividend to grow annually at a constant rate​ 3%. The current stock price is​
mariarad [96]

Answer:

Cost of Earnings = (Dividends per share for next year ÷ Current market value of the stock) + Dividend growth rate

= 8.42 %

Explanation:

See Attachment

4 0
3 years ago
1-
andre [41]
Number 1 is B. column Number 2 is C. arrow down key Number 3 is C. tab
5 0
3 years ago
Joseph runs a popular cafeteria chain. He currently has three branches in the city. He plans to enter a franchise contract with
vekshin1

Answer:

B. business format franchise

Explanation:

Under the business format model, the franchisee adopts the entire business operating systems of the franchisor. It means that the franchisee uses the franchisor's trademark, plans, and procedures. Goods and services offered by the franchisee will be identical and will bear the same prices as those of the franchisor.

Joseph plans to operate a business format model of a franchise. The franchisee will have to meet Joseph's standards of operations. For that to happen, Joseph must provide the following.

  1. Initial training
  2. Standardize build-out plans
  3. Operations manuals
  4. Continuous support
  5. Point-of-sale system education
  6. Key functionalities

Joseph has a responsibility to ensure the franchisee adhere to the standards agreement. It means he will have a supervisory role in management for the franchisee.

In return, Joseph will be earning commissions from each franchisee based on the income of each of them.

3 0
3 years ago
g A monopoly is a market that has Group of answer choices Only one buyer. Only one seller. Many sellers who sell differentiated
Dahasolnce [82]

Answer:

Only one seller.

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller (one seller) who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.

Also, a monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.

For example, a public power supply company is an example of a monopoly because it serve as the only source of power supply to the general public in a society.

A public power company refers to a company that provides power (electricity) utility to the general public of a society.

In conclusion, a monopoly is a market that has only one seller.

5 0
3 years ago
Other questions:
  • C&amp;S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the
    14·1 answer
  • Which of the following statements about the consideration set is false? Group of answer choices
    6·1 answer
  • Which of the following is NOT an example of a liquid asset?
    6·1 answer
  • __________ refers to the location of the sport product, the point of origin for distributing the product, the geographic locatio
    8·1 answer
  • Preparing a budget is a simple six-step process.
    11·1 answer
  • Who can help me write at least 10 interview questions to ask a manager
    14·2 answers
  • "Institutional portfolio managers have been allocating an increasing percentage of their funds to cash and cash equivalent posit
    8·1 answer
  • The following selected transactions occur during the first year of operations. Determine how each should be reported in the stat
    10·1 answer
  • You work for REV and check your work email on your mobile phone. You have decided to resign
    14·1 answer
  • Why is competition limited in an oligopoly
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!