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Aloiza [94]
3 years ago
11

Let RUS be the annual risk free rate in the United States, RUK be the risk free rate in the United Kingdom, F be the futures pri

ce of $/BP for a 1-year contract, and E the spot exchange rate of $/BP. Which one of the following is true?
A. if RUS > RUK, then E > F
B. if RUS < RUK, then E < F
C. if RUS > RUK, then E < F
D. if RUS < RUK, then F = E E.
There is no consistent relationship that can be predicted.
Business
1 answer:
jeka57 [31]3 years ago
3 0

Answer:

If RUS > RUK, then E < F ( C )

Explanation:

RUS = annual risk free rate in united states

RUK = annual risk free rate in United kingdom

F = futures price of $/BP  for 1 year

E = spot exchange rate for $/BP

To get a higher the future price

this conditions must be met

The annual risk free rate of the united states must be higher than the annual risk free rate of the united kingdom. if this condition is met then the the British pound will have a forward premium ( F ) > ( E )

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A paint manufacturing company has three factories located in France, Germany, and Spain. The productivity data of the factories
gizmo_the_mogwai [7]

Answer:

Option (c) is correct.

Explanation:

France:

Production cost per unit:

= Amount of paint produced ÷ Total input cost

= 4,000,000,000 ÷ $3,500,000

= 1142.85714286

Productivity:

= Production cost per unit ÷ Amount of paint produced

= 1142.85714286 ÷ 4,000,000,000

= 0.0000028571

Germany:

Production cost per unit:

= Amount of paint produced ÷ Total input cost

= 5,500,000,000 ÷ $5,250,000

= 1047.61904762

Productivity:

= Production cost per unit ÷ Amount of paint produced

= 1047.61904762 ÷ 5,500,000,000

= 0.00000019048

Spain:

Production cost per unit:

= Amount of paint produced ÷ Total input cost

= 4,600,000,000 ÷ $5,250,000

= 876.19047619

Productivity:

= Production cost per unit ÷ Amount of paint produced

= 876.19047619 ÷ 4,600,000,000

= 0.00000019048

France is higher than that of the factory in Spain.

5 0
2 years ago
Which company re locate in the us ?
Lubov Fominskaja [6]

walmart, hole this helps

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When Excedrin introduced its new Excedrin Migraine into its product line of pain relievers, it was introducing what is called a:
NISA [10]

Answer:

1) Line extension

Explanation:

A product line is made up of a group of products manufactured by the same company and all of them are branded under the same name, e.g. Coke, Diet Coke, Coke Zero

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nikdorinn [45]

Answer:

A. Micro-economics

Explanation:

Micro-Economics represents a study of economic activiites or economic choices that affect individual businesses or organisations, individual consumers or individual families. Since the focus of Williams & Co is on determining appropriate prices for products sold in its individual firm, then the focus is micro-economics

Macro Economics represents the study of economic activities and choices but instead of the individual level, it studies these acivities at the overall national level or at the global level. So the study of pricing among the various detergent producing firms in the United States is under the purview of macro economics

Monetary policy focuses on the tools that are used to regulate the entire economy especially the Federal Reserve through the regulation of the activities of member financial institutions.

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