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
During December, the production department of a process operations system completed and transferred to finished goods a total of
Sedaia [141]

Answer:

$3.12

Explanation:

EUP and cost per EUP DM

* Completed and transferred 65,000 x 100% = 65,000

* Ending Work in Process

* Direct materials 15,000 x 80% = 12,000

* Equivalent units = 77,000

* Costs of beginning inventory = $57,500

* Costs incurred this period = 183,000

* Total costs = $240,500

* Cost per equivalent unit $240,500 ÷ 77,000 = $3.12

Cheers

4 0
3 years ago
Chao sells custom bicycles. He buys several bike parts including wheels and tires from Upright Strides, Inc. Although several go
vitfil [10]

Answer:

d. laws that support enforceable contracts between firms.

Explanation:

Chao sources his bicycle bparts from Upright Strides Inc. such as wheels and tires. A threat to his business will be if he does not get his supply from Upright Strides Inc. Long drawn out disputes will cause loss of income for Chao.

So if the government implements laws that supports enforceable contracts between firms, in the case of dispute or non supply of goods Chao can enforce their contract with Upright Strides compelling them to supply goods.

8 0
3 years ago
Use the compound interest formula,     . kelly opened a savings account with $500 she received at eighth grade graduation 4 year
PolarNik [594]

The answer is “$553”.

Kelly’s account pays = 2.5 percent compounded daily = 2.5/100 = 0.025

There are 365 days in one year, so 

<span>
i = .025/365 </span>

so number of days = n = 4(365) = 1460 

Amount = 500(1 + .025/365)^1460 

<span>=552.59 = $553</span>

7 0
3 years ago
Read 2 more answers
the table you're working at keeps wobbling you decide to fix it by making a thick pad of paper from folded sheets of paper. each
MissTica
Pad 1 = folded 3 times
If folding a sheet of paper creates 2 layers, then folding a piece of paper creates 4 layers because you are basically folding the 2 layers you initially created which doubles it. (Folding any amount of layers doubles the layers).

Pad 2 = folded 2 times
This sheet of paper has 2 layers. That information was given to us beforehand.

Lastly add up all the layers: 4 + 2 = 6

Final answer: It took 6 layers of paper to prop up the table
6 0
3 years ago
The equipment has an estimated useful life of ten years and an expected salvage value of 20 percent. Gravity Hospital’s December
ch4aika [34]

Answer:

The cost of the equipment when it was acquired on January 1, 2011 is $10000

Explanation:

10000÷5=2000

2000*10=20000

     

20000 80%    

    X 100%  X=25000  

     

25000*20%= 5000 25000-20000=20000  

2011  2000    

2012 2000    

2013 2000    

2014 2000    

2015 2000 10000  

8 0
3 years ago
Other questions:
  • Indicate the accounts affected and enter decreases to account categories with a minus sign. a. At the end of the period, bad deb
    15·1 answer
  • Ray Steen recently started a business. During the first few days of operation, Mr. Steen transferred $100,000 from his personal
    13·1 answer
  • During a recessionary period, which of the following economic behavior would be expected? Consumer would switch from premium bra
    14·1 answer
  • Holiday Inn would like to estimate the satisfaction level of its customers. A sample of 25 hotels were selected and the customer
    6·1 answer
  • A banker can lend money at 9.1% compounded monthly or at 9.3% compounded quarterly. If the length of the loan is 15 years, which
    7·1 answer
  • . What is unethical behavior?
    13·2 answers
  • Each of the following is correct regarding treasury stock except that it has been
    5·1 answer
  • The risk-free rate of return is 5 percent and the market risk premium is 12 percent. What is the expected rate of return on a st
    14·1 answer
  • g Todd Foley is applying for a $210,000 mortgage. He can select either a $1,470 monthly payment with no points or a $1,323 payme
    10·1 answer
  • People are living paycheck to paycheck why is that a problem
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!