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
Eddi Din [679]
2 years ago
10

Suppose that the one-year interest rate is 5.0 percent in the United States; the spot exchange

Business
1 answer:
Mrac [35]2 years ago
3 0

Answer:

The interest rate for the euro zone to avoid arbitrage has to be C) 8.62%

Explanation:

Hi, we need to solve for r(eur) the following equation in order to find an interest rate that will avoid arbitrage.

Forward=Spot(\frac{1+r(usd)}{1+r(eur)} )

That is:

1.16 =1.20 (\frac{1+0.05} {1+r(eur)} )

(1+r(eur)) =\frac{1.20} {1.16} (1+0.05)

r(eur)=\frac{1.20}{1.16}(1+0.05)-1

r(eur)=0.0862

So, the euro zone rate to avoid arbitrage is 8.62%, which is option C)

Best of luck.

You might be interested in
An unfavorable fixed overhead volume variance can be due to all of the following except a.sales orders at a low level b.an incre
IgorC [24]

B is the correct answer.

An unfavourable fixed overhead volume variance can be due to all of the following except an increase in utility costs.

<h3>What is utility costs?</h3>

Utilities costs are the price associated with using services including electricity, water, waste removal, heating, and sewage. Throughout the reporting period, expenses are incurred, calculated, and accrued for, or payments are made. The term "Utility Costs" refers to all fees, surcharges, and other expenses related to providing any utilities that are necessary for the Premises, the Premises, or the Improvements, including, but not limited to, heating, ventilation, and air conditioning costs, costs associated with providing gas, electricity, and other fuels or power sources to the Premises, and costs associated with providing water and sewage services to the Premises.

To learn more about utility cost, visit:

brainly.com/question/8212077

#SPJ4

8 0
1 year ago
Which of the following is true regarding positive organizational scholarship? a. It involves monitoring negative practices in or
Harrizon [31]

Answer:

Letter D is correct. It studies how organizations develop human strengths, foster vitality, and unlock potential

Explanation:

Positive Organizational Scholarship is a way for an organization to motivate and stimulate the capabilities of its employees. It is a way of identifying the strengths and weaknesses of each employee and encouraging them to improve their skills and developing new skills that will help them to succeed. joint result of the company.

5 0
3 years ago
Cragmont has beginning equity of $277,000, net income of $63,000, withdrawals of $25,000 and no additional investments by owners
MatroZZZ [7]
The ending equity is $315,000 This is just a matter of adding income and subtracting withdraws. So let's do it. "Cragmont has beginning equity of $277,000," x = $277000 "net income of $63,000" x = $277000 + $63000 = $340000 "withdrawals of $25,000" x = $340000 - $25000 = $315000
3 0
3 years ago
A pegged exchange rate means the value of the currency is fixed relative to a reference currency
ruslelena [56]
Are you asking if it’s true or false?
5 0
3 years ago
The Reynolds Corporation buys from its suppliers on terms of 2/19, net 50. Reynolds has not been utilizing the discounts offered
harina [27]

Answer:

23.68%

Explanation:

The computation of the cost of not taking a cash discount is shown below:-

Cost of not taking a cash discount = [Discount percentage ÷ (100% - Disc.%)] × (360 ÷ (Final due date - Discount period))

= (2% ÷ 98%) × (360 ÷ (50 - 19))

= 2.04% × 11.61

= 23.68%

Therefore for computing the cost of not taking a cash discount we simply applied the above formula.

4 0
3 years ago
Other questions:
  • On April 1, 2017, Shannon Company, a U.S. company, borrowed 100,000 euros from a foreign bank by signing an interest-bearing not
    8·1 answer
  • George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 per unit. Each order placed
    5·1 answer
  • What entrepreneurial activities do you know and capable of doing which are related to cookery
    15·1 answer
  • Taylor needs a natural resources in his venture to make his enterprise possible. Which of the following isn't considered a capit
    12·1 answer
  • A client with suspected multiple myeloma is reporting back pain. What is the priority nursing action?
    6·1 answer
  • Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1
    11·1 answer
  • According to arnold and bowie, are mnes responsible for the practices of their subcontractors and suppliers?
    12·1 answer
  • Kemp Manufacturing set 70,000 direct labor hours as the annual capacity measure for computing its predetermined variable overhea
    15·1 answer
  • Which stage of the planning process is Jekyll Corp. involved in if it is assessing how well alternative plans meet high-priority
    8·1 answer
  • The amount of money you need to maintain in your account to avoid a fee is the?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!