Answer:
The arbitrageur should borrow money at 4% per annum since it is cheaper than paying the forward price for delivery
Explanation:
Current price of gold=$1,400 per ounce
Forward price=$1,500
The arbitrageur can either pay the forward price or borrow $1400 and pay the interest of 4% in a year. Consider option 1 paying the forward price of 1500
Option 1
Since there are no additional costs, the total cost for buying the gold=forward price=$1,500
Option 2
If the arbitrageur borrows the 1400 to pay for the gold now, then pay the interest in 1 year;
The total cost=Amount borrowed+interest accrued in 1 year
Total cost=1400+(4%×1400)
1400+((4/100)×1400)
1400+56=$1456
Since there are no additional costs, option 2=$1456
If we compare option 1 to option 2, we notice that option 2 is slightly cheaper than option 1 by $44
(Option 1-Option 2)=(1500-1456)=$44
The arbitrageur should borrow money at 4% per annum since it is cheaper than paying the forward price for delivery
There are many variables that affect both retention of skill and the ability to transfer it; such variables are the frequency of practice blocks, amount of practice, homogeneity of tasks etc. It is important to distinguish between ability to perform and ability to teach. While ability to perform goes up, it is probably that at some point, certain parts of the motor skill become automated; the recnstruction process is not needed anymore and the reflex is automatic. Due to this, an individual might have high ability to perform, while low ability to teach. When there are only a few repetitions, automations have not set in yet and the experimental subject is conscious of the whole process; he has to mentally reconstruct it and thus it is easier for him to transfer his knowledge to another.
<span>Because interest income is usually the largest component of a bank's income, specifically for a commercial bank. (Investment banks earn more from fees and trading.)</span>
Answer:
Franchising
Explanation:
In Franchising, a company who already has a successfully established brand give other people with the ability to open new branch by using that brand.
Example for this would be McDonald. McDonald operate under a franchising system, in which a person who have enough capital to provide building can pay a certain amount money to McDonald in exchange for permission to use its brand.
In most franchising system, the Franchiser usually impose a strict regulation regarding the format of the business. They do this in order to maintain the reputation of the brand.
