Answer:
A. True
Explanation:
Arbitrage refers to a situation wherein a gain is made owing to price discrepancy or unevenness in two markets. The rule for arbitrage is to buy from the markets where price is less and sell in the markets where price is higher.
Triangular arbitrage occurs wherein 3 different currencies are involved and the exchange rates are not uniform i.e a discrepancy exists and interest rate parity does not hold true.
Interest rate parity refers to the concept wherein the disparity between two currency exchange rates is adjusted by the respective interest rates of the two countries. When interest rate parity exists, no arbitrage is possible as markets are fairly priced.
Answer:
= $877.32
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).</em>
<em>Value of Bond = PV of interest + PV of RV</em>
The value of bond for Jasper Inc can be worked out as follows:
Step 1
<em>PV of interest payments</em>
<em>Semi annul interest paymen</em>t
= 4.5% × 1000 × 1/2
= 22.5
<em>Semi-annual yield</em> = 5.6/2 = 2.8% per six months
<em>Total period to maturity (in months)</em>
= (2 × 19) = 38 periods <em> (Note it was sold a year ago)</em>
<em>PV of interest = </em>
<em> </em>22.5 × (1- (1+0.028)^(-38)/0.028)
= 22.5 ×23.20871226
= 522.196
Step 2
<em>PV of Redemption Value</em>
= 1,000 × (1.056)^(-19)
= 355.128
<em>Price of bond</em>
= 522.19 + 355.12
= $877.32
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If that happen, other investors that bet for the opposite cause of your investment would be the one that gained that money, and you will still able to keep that stocks to collect dividend as long as you don't sell it.
(this circumtances won't happen if the reason you lost the money is the firm going into bankruptcy)
Answer:
solution below
Explanation:
(gain - loss)x35%
for megan
(5500 - 2242) * 35%
= $1140.3 is owed
a.) for megan
(5500-2100)*35%
= $1190
b. for margaret
(4000-2000) x 35%
=$700
c. For melissa,
It doesnt matter if she took this withdrawal at 65 years of age.
d. for morgan
110 - 100 = 10 this is the gain per share
total gain = 10 x 100 = 1000
income tax = 1000 x 0.35 = 350 dollars
e. for murphy,
his income tax would fall by
4000 x35% = 1400.
After this, selling the stock would have no effect on current taxes.
