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Gre4nikov [31]
3 years ago
14

Suppose you observe a spot exchange rate of $1.0500/€. If interest rates are 5% APR in the U.S. and 3% APR in the euro zone, wha

t is the no-arbitrage 1-year forward rate? Multiple Choice €1.0300/$ $1.0300/€ €1.0704/$ $1.0704/€
Business
1 answer:
Kitty [74]3 years ago
7 0

Answer:

Forward rate= Spot rate * (1+ US interest rate)/(1+Euro interest rate)

= 1.05*1.05/1.03

Forward rate= $1.0704/€

Explanation:

You might be interested in
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
Which of these fees is paid at the closing when a home purchase is finalized?
sleet_krkn [62]
<u>d.) Title insurance</u> is one of the fees that is paid at the closing of a home purchase when it is finalized.

There are two types of title insurance.
1) Lender's Policy Title Insurance - this is an insurance to assure the lender the you own the home and that the mortgage applied is a valid lien. This happens when you buy a house through bank financing.
2) Owner's Policy Title Insurance  - this is an insurance policy that protects you as the owner of the house when third party contests your ownership of the house.

8 0
2 years ago
A coal mine cost $ 1 comma 001 comma 000and is estimated to hold 57 comma 000tons of coal. There is no residual value. During th
lorasvet [3.4K]

Answer:

Depletion expenses for the first year is $210736.840

Explanation:

Depletion expenses= (Cost of coal mine - residual value) / Total tons of coal * tons extracted

=(1,001,000 - $0) / 57,000 tons * 12,000 tons

=$210736.8421

=$210736.840

6 0
2 years ago
what type of interest rate is set and will not be changed unless you go over the limit or fail to make a payment​
ICE Princess25 [194]

Answer:

Simple interest is paid only one time and does not change.

Explanation:

Hope this helped you!

5 0
3 years ago
Match the taxes to the entities on which they are assessed
nlexa [21]

Answer:

question isn't clear. any answers???

6 0
2 years ago
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