Answer:
carry trade
Explanation:
Carry trade can b defined as borrowing funds at a low interest rate and then investing those funds in assets that generate a higher return. This way, you profit will be the difference between the higher rate of return yielded by the asset minus the low interest rate paid for the loan. Carry trade is a type of arbitrage since you are obtaining a good at a certain price (low interest rate) and placing it at a higher price (higher rate of return).
Answer:
Premium = $5.76 -$5.51 = 0.25
Percentage of premium = 0.25/5.76 x 100
= 4.34% premium
The correct answer is A
Explanation:
This is an indirect quote in which dollar is fixed and shekels is variable. In order to obtain the 180-day forward rate, premium of $0.25 has been deducted. In indirect quote, premium is deducted from the spot rate in order to determine the forward rate ie $5.76 - $0.25 = $5.51. The percentage of premium is calculated as premium divided by spot rate multiplied by 100.
Answer:
net income = $106,000
Explanation:
net income = total revenues - total expenses = $772,000 - $666,000 = $106,000
Any additional capital raised will increase the company's cash flows (financing activity) and any dividends distributed will decrease them (another financing activity), but they do not affect the company's net income.
Answer:
a. How much will Ruby’s IRA be worth when she needs to start withdrawing money from it when she retires?
the future value of Ruby's IRA = $10,000 x 21.725 (FV factor, 8%, 40 periods) = $217,250
b. How much money will she have to accumulate in her company’s 401(k) plan over the next 40 years in order to reach her retirement income goal?
she needs to accumulate $875,000 - $217,250 = $657,750 during the next 40 years
the annual contribution = FV / FV annuity factor = $657,750 / 259.057 (FV annuity factor, 8%, 40 periods) = $2,539.02 per year
