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
arsen [322]
3 years ago
10

ssume that interest rate parity exists. You expect that the one-year nominal interest rate in the U.S. is 7%, while the one-year

nominal interest rate in Australia is 11%. The spot rate of the Australian dollar is $.60. You will need 10 million Australian dollars in one year. Today, you purchase a one-year forward contract in Australian dollars. How many U.S. dollars will you need in one year to fulfill your forward contract? A. $5,784,000 B. $5,387,000 C. $6,184,000 D. $8,356,000
Business
1 answer:
EleoNora [17]3 years ago
8 0

Answer:

The answer is A. $5,784,000

Explanation:

[(1.08)/(1.11)] -1 = -3.6%

Thus one year forward rate is 0.60*[1 +(0.036)] = $5784

$5784 * 10 000 000= <u>$5,784,000</u>

You might be interested in
When an item is purchased ,money is exchanged for the to.......
kaheart [24]

Answer:

When an item is purchased ,money is exchanged for the to.......

Explanation:

When an item is purchased ,money is exchanged for the to.......

4 0
2 years ago
Read 2 more answers
Equipment with a cost of $225,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 10,000 hours. It
elixir [45]

Answer:

The depreciation is $52,500

Explanation:

The formula to compute the depreciation under the straight-line method is shown below:

= \dfrac{(original\ cost - salvage\ value )}{Number\ of\ years}

= \dfrac{(\$225,000 - \$15,000)}{4\years}

= $52,500

Under the straight-line method, the depreciation expense should be the same for the remaining useful life. Life of the equipment or machine should always be expressed in years, not in hours.

So, these usage of hours should be ignored.

4 0
2 years ago
Which of the following statements is true.
Ad libitum [116K]
A. Women face wage discrimination and experience lower pay within similar professions compared to men.
4 0
2 years ago
Read 2 more answers
£)
aleksley [76]

Answer:

The greatest number of mangoes which are to be taken out at a time from each basket so that both of them emptied simultaneously is the number of mangoes in each basket which is 120 mangoes for one basket and 168 mangoes for the other basket

Explanation:

Given that the number of mangoes in one basket = 120 mangoes

Also, the number of mangoes in another basket = 168 mangoes

The greatest number of mangoes, X and Y that are to taken out from each basket so that both of them will empty simultaneously is found as follows;

We note that the ratio of the number of mangoes in both baskets are;

120:168 = 5:7

Therefore, we have;

5 × Y = 120

Y = 20/5 = 24

Similarly, we have;

7 × X = 168

X = 168/7 = 24

We can take 5 mangoes from one basket and 7 mangoes from the other basket 24 times, for both mangoes to empty the same time

We can also take 5×12 = 60 mangoes twice from one basket and 7 × 12 = 84 mangoes twice from the other basket to empty the baskets

We can also take 120 mangoes one from one basket and 168 mangoes one from the other basket to empty the baskets.

Therefore, the greatest number of mangoes which are to be taken out at a time from each basket so that both of them emptied simultaneously is the number of mangoes in each basket which is 120 mangoes for one basket and 168 mangoes for the other basket.

3 0
3 years ago
What is market saturation?
Leona [35]
In economics, market saturation is a situation in which a product has become diffused (distributed) within a market;the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology.
3 0
3 years ago
Other questions:
  • You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line
    13·1 answer
  • Me. Gareth owns a toy-manufacturing company. Which of these items in his company is an intermediate good?
    14·2 answers
  • Dyed-Denim Corporation is seeking to lower the costs of value creation and achieve a low-cost position. As a result, it plans to
    7·1 answer
  • A law firm received $2,000 cash for legal services to be rendered in the future. The full amount was credited to the liability a
    8·1 answer
  • Bond valuationThe process of bond valuation is based on the fundamental concept that the current price of a security can be dete
    11·1 answer
  • Following are transactions for Valdez Services, a company owned by Brina Valdez. A. Brina Valdez invested $20,000 cash in the co
    15·1 answer
  • Joshua Gnaizda received an envelope in the mail from Time, Inc. The front of the envelope contained two see-through windows part
    6·1 answer
  • Andermeyer Jewelers, which specializes in high-end jewelry, has been in existence since the 1870s and has served generations of
    10·1 answer
  • The supply schedule is identical to the demand schedule at every price. b The quantity demanded is the same as the quantity supp
    10·1 answer
  • Jul. 1 Yang contributed $68,000 cash to the business in exchange for common stock.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!