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Grace [21]
4 years ago
12

. The current spot exchange rate is $1.50/€ and the three-month forward rate is $1.55/€. Based on your analysis of the exchange

rate, you are confident that the spot exchange rate will be $1.62/€ in three months. Assume that you would like to buy or sell €1,000,000. What actions do you need to take to speculate in the forward market? What is the expected dollar profit from speculation? A. Sell €1,000,000 forward for $1.50/€, and you expect to gain $120,000. B. Buy €1,000,000 forward for $1.55/€, and you expect to gain $70,000. C. Buy €1,000,000 forward for $1.50/€, and you expect to gain $120,000. D. Wait for three months, if your forecast is correct buy €1,000,000 at $1.62/€.
Business
1 answer:
Andre45 [30]4 years ago
6 0

Answer:

B) Buy €1,000,000 forward for $1.55/€.

Explanation:

To calculate the expected profit consider the following data and formula:

Amount in actions: 1.000.000

Spot exchange rate: 1.62

Three month forward calculation: 1.55

Expected profit=1,000, 000 *( 1.62 - 1.55) = 70,000.00.

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Which statement describes a convention used by Italian Baroque artist Caravaggio in The Conversion of Saint Paul?
user100 [1]

Answer:

D.foreshortening to bring the figure to the front of the painting and project him into the viewer's space.

Explanation:

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3 years ago
Lee worked on a global team for an American company, and all her work had to be completed in her second language, English. Somet
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Answer:

E. Encoding

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Lee was asked to complete her work in English language which was her second language. She wasn’t really conversant with the language which is why her colleagues found it difficult to understand what she wrote.

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3 years ago
Last year toni earned a salary of $39,500. toni just received a raise and now earns $44,230 a year. if toni is paid biweekly, ho
mafiozo [28]
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Toni made 1,519.23 with his old salary

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Now you take the new paycheck and subtract it from the old paycheck. 

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9. Problems and Applications Q9 Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Th
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Answer: False

Explanation:

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If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected.

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Real rate would be higher than anticipated.

8 0
3 years ago
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