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
almond37 [142]
3 years ago
11

Suppose the spot and six-month forward rates on the Norwegian krone are Kr 5.83 and Kr 5.98, respectively. The annual risk-free

rate in the United States is 3.63 percent, and the annual risk-free rate in Norway is 5.33 percent.
The six-month forward rate on the Norwegian krone would have to be Kr/$ ........... to prevent arbitrage.
Business
1 answer:
enyata [817]3 years ago
6 0

Answer:

The six-month forward rate on the Norwegian krone would have to be Kr/$ 5.93 to prevent arbitrage

Explanation:

In order to calculate the six-month forward rate on the Norwegian krone we would have to calculate the following formula:

six-month forward rate = S (1+id) / (1+if)

According to the given data we have the following:

S=5.83

id=5.33%

if=3.63%

Therefore, six-month forward rate =5.83 (1+5.33%) / (1+3.63%)

six-month forward rate =6.14/1.04 = 5.93

The six-month forward rate on the Norwegian krone would have to be Kr/$ 5.93 to prevent arbitrage

You might be interested in
Identify and describe the three steps that the team should follow in order to define project scope and create a project scope st
Fittoniya [83]

Answer:

3 steps are:

Planning

Controlling

Closing

Explanation:

Project scope is the term which is defined as the work that require to be achieved in order to deliver the product, result or service with the particular or specified functions as well as features.

The 3 steps which a team need to follow in defining the project scope and creating a statement of project scope is as:

1. Planning - It is that procedure where an effort is made in order to capture or apprehend and define the work which needs or required to be perform or done.

2. Controlling - The processes of monitoring and controlling focus on the scope creep, approving or disapproving the project changes, tracking and documenting tracking.

3. Closing -It is the final procedure of the project scope, it involves the audit of the assessment and the deliverables of the project against the original plan.

8 0
2 years ago
Brendan is a manager in a chocolate factory. His team works on an assembly line; workers fill boxes that come at a fixed rate of
yuradex [85]

Answer:

Brendan is using people-oriented leadership style

Explanation:

Brendan's People-oriented leadership behavior is more likely to have more positive effects in running the affairs of the chocolate factory rather than using automatic feedback system.

6 0
2 years ago
Using the letters above and the format below, indicate the balance sheet category in which an entity typically would place each
Alekssandra [29.7K]

Answer:

The balance sheet category in which an entity typically would place each of the following items:

1. _Non-Current Assets_ Long-term receivables

2. _(Non-Current Assets)__ Accumulated amortization

3. __Current Liabilities__ Current maturities of long-term debt

4. Page 192_Current Liabilities_ Notes payable (short term)

Explanation:

A company's balance sheet has three main categories: assets, liabilities, and owners' equity. The assets are usually classified as Current Assets or Non-Current (long-term) Assets.  On the other side of a balance sheet, there are the Liabilities and Owners' Equity.  The Liabilities are classified into Current Liabilities and Non-Current Liabilities.  Usually, the Owners' Equity is made up of Owners' Capital and Retained Earnings.

8 0
2 years ago
Hewlett-Packard’s recycling service is available today in more than 73 countries, regions, and territories. By early 2015, Hewle
Kryger [21]

Answer:

Reverse Logistics

Explanation:

After-sales activities are coined as reverse logistics. More precisely, when the products need to be recycled, refurbished, or reused, it is a reverse logistics system. It is a cost-effective approach to reuse the products again and again. Since HP company has been recycling its product for more than a decade, they are practicing a reverse approach.

6 0
3 years ago
It takes Juan 1 hour to wash a car and 2 hours to wax it. Maria, on the other hand, takes 1 hour to wash a car and half an hour
Anastasy [175]

Answer: Juan; Lower

Explanation:

One can do the work in which it has a comparative advantage. If one person has the lower opportunity cost of doing some work than the other person then he would specialize in that activity.

Here,

Juan opportunity cost of washing a car = \frac{1}{2}

                                                                            = 0.5 car waxed

This means that the opportunity cost of washing a car is being able to wax 0.5 car.

Maria opportunity cost of washing a car = \frac{1}{0.5}

                                                                            = 2 cars waxed

This means that the opportunity cost of washing a car is being able to wax 2 cars.

Therefore, the opportunity cost of washing a car is lower for Juan. So, Juan would specialize in washing.

4 0
3 years ago
Other questions:
  • cathy's customer base is 2/3 residential and 1/3 business . if she has 350 residential customers, how many total customers does
    5·1 answer
  • Are there any truly free dating websites
    6·1 answer
  • Rank the 1040 forms in order from simplest to most complex. a. 1040-A, 1040-EZ, 1040 b. 1040-EZ, 1040, 1040-A c. 1040-EZ, 1040-A
    9·2 answers
  • A ___________________ arrangement exists when medical care providers are paid according to the services they provide.
    12·1 answer
  • The marketing mix elements are called ________ because they are the responsibility of the marketing department in an organizatio
    7·1 answer
  • For each transaction, indicate the transaction's effect on the company's accounting equation by selecting either increase, decre
    12·2 answers
  • Kevin plans to go to college after he graduates from high school. The tuition is $8,000 a year, and room, board, and books cost
    9·1 answer
  • You take out a loan for $100,000 at an annual interest rate of 5.9% that is to be paid with three equal annual payments of $37,3
    13·1 answer
  • People who are high on authoritarianism do not do well
    5·2 answers
  • Locked-In Real Estate (LIRE) is preparing for their Initial Public Equity Offering (IPO). With its holdings consisting of rent c
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!