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irina1246 [14]
3 years ago
14

Suppose that the risk-free rates in the United States and in Japan are 5.25% and 4.5%, respectively. The spot exchange rate betw

een the dollar and the yen is $0.008828/yen. What should the futures price of the yen for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs
Business
1 answer:
kotegsom [21]3 years ago
6 0

Answer:

$0.008891/Yen

Explanation:

The computation of arbitrage free rate is shown below:-

Fair forward rate = Spot rate × (1 + Interest rate US) ÷ (1 + Interest Rate Japan)

= 0.008828 × (1 + 5.25%) ÷ (1 + 4.5%)

= $0.00889135885/Yen

or

= $0.008891/Yen

Therefore for computing the arbitrage free rate we simply applied the above formula.

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Gnoma [55]
I would say that quality catering has a production-oriented culture where meeting production targets on time is prime and the fact that the manager rewards the meeting of those targets is good but he shouldn't ignore the need for employee development and satisfaction as that could have an adverse effect in the long term. 
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3 years ago
Using the Rule of 70, if Slowland's GDP grows at 2% per year and Speedyland's GDP grows at 5% per year, how much quicker will Sp
Solnce55 [7]

Answer:

b. Speedyland will double its GDP 21 years quicker than Slowland.

Explanation:

According to the rule of 70, it tells about the number of years to double

For Slowlands

= 70 ÷ 2

= 35

For speedyland

= 70 ÷ 5

= 14

So if we take the difference than it comes

= 35 - 14

= 21

Hence, the correct option is b and the same is to be considered

And all other options are wrong

6 0
3 years ago
Why are employee benefits strategically important to employers and what are some key strategic considerations?
Vilka [71]

Explanation:

Employee benefits are strategically important for employers because this is a strategy for recruiting and retaining good people to work for your company, as qualified employees will be more productive and will more effectively assist in achieving goals and organizational objectives.

However, offering benefits requires a high cost, because the more benefits the company offers, the more expensive the cost of hiring employees, so it is necessary to have a clear communication strategy with employees about the value and cost of benefits received, so that there is a greater understanding of total compensation.

4 0
3 years ago
Describe several ways that communication technology can assist individuals and organizations.
Simora [160]

Answer:

Describe several ways that communication technology can assist individuals and organizations?

Communication Technology has greatly helped individuals to build confidence or increase it, also it helps to grow or develop a good interpersonal relationship, it also helps individual to be expressive either by writing or speaking, it helps enhances smooth running of organization in terms of team work, synergy, among others

Explanation:

5 0
3 years ago
Pedregon Corporation has provided the following information: Cost per UnitCost per Period Direct materials$ 6.35 Direct labor$ 3
sergij07 [2.7K]

Answer:

$ 7.95

Explanation:

Calculation for what the contribution margin per unit sold is closest to:

Sales price$ 20.60

Less: VARIABLE COSTS

Direct material$ 6.35

Direct labor$ 3.75

Variable manufacturing overheads$ 1.50

Sales commission$ 0.50

Variable admin expenses$ 0.55

Total Variable costs$ 12.65

Contribution margin$ 7.95

($20.60-$12.65)

Therefore the the contribution margin per unit sold is closest to:$ 7.95

7 0
3 years ago
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