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
Nutka1998 [239]
3 years ago
10

Suppose that the risk-free rates in the United States and in the United Kingdom are 4% and 6%, respectively. The spot exchange r

ate between the dollar and the pound is $1.60/BP. What should the futures price of the pound for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
4 0

Answer:

The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.

Explanation:

In order to calculate the the futures price of the pound for a one-year contract be to prevent arbitrage opportunities we would have to make the following calculation:

futures price of the pound for a one-year contract=Spot rate*(1+United Kingdom risk free rate)/(1+United States risk free rate)

futures price of the pound for a one-year contract=$1.60/BP*(1+6%)/(1+4%)

futures price of the pound for a one-year contract=$1.63/BP

The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.

You might be interested in
How do you calculate net gdp
Svetlanka [38]

Answer:

you would calculated by total national income + sales taxes + depreciation + net foreign factor income total (just Google it)

5 0
3 years ago
PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!
MaRussiya [10]

Answer:

B. $1,619

Explanation:

150×10.98= 1647

1647-28=$1619

8 0
3 years ago
Read 2 more answers
What is the difference between crowd sourcing and crowd funding?
natita [175]

Answer:

a) crowd sourcing carries fewer risks

Explanation:

<u>Crowd sourcing:</u> The term "crowd sourcing" is described as a phenomenon that encompasses the procedure of sourcing skills or information or some end products from a particular group or groups of different people.

<u>Crowdfunding:</u> The term "crowdfunding" is described as a phenomenon that encompasses the procedure of sourcing funds or money from a specific group of groups of different people.

<u>In the question above, the correct answer is option a.</u>

5 0
3 years ago
Universal finance has segmented its customer base into two categories: high wealth and retirement. high wealth accounts should b
kap26 [50]

In the scenario in which the segmentation of the customer base is in two categories: high wealth and retirement. A system administrator can make the differentiation high wealth accounts to be visible to high wealth sales team members and retirement accounts should be visible to all sales user, by setting the organization-wide default sharing to private and create a sharing rule to share Retirement accounts with all Sales users.

7 0
2 years ago
Identify the appropriate step in the communication process.
Gnesinka [82]

Answer:

The correct answer is letter "A": Sender encodes message.

Explanation:

Communication is the process of transmitting information from one party to another. The communication process has five (5) steps: <em>encoding, planning, medium, decoding, </em>and <em>feedback</em>. In the encoding step, the idea to be transmitted is schemed in letters, words or symbols without sending them to the channel.

Thus, <em>by writing a recommendation report, Crystal Jenkins is in the encoding stage of communication.</em>

4 0
3 years ago
Other questions:
  • The spotlight on small business box "earning while learning" features students who
    14·1 answer
  • The practical capacity for a particular production facility is best described as Select one: A. the highest level of activity po
    10·1 answer
  • Eastline Corporation had 13,500 shares of $5 par value common stock outstanding when the board of directors declared a stock div
    15·1 answer
  • Brown and Peterson studied how well participants can remember groups of three letters (like BRT, QSD) after various delays. They
    6·1 answer
  • Decision making "at the margin" means making a choice based on __________ of a decision.
    15·1 answer
  • Which of the following BEST represents democratic values?
    14·1 answer
  • Black Lilies is a fledgling apparel company which is run and managed by its creator Patricia. She has advertised for an accounti
    6·1 answer
  • Jake Olsen has decided to put $1,000 in the bank. List several questions Jake might want to ask before ch whether to put the mon
    9·1 answer
  • What is your expectation of this subject industrial psychology
    6·1 answer
  • Janessa wants to pay off her credit card balances within 12 months. She is trying to decide if she should use her $1,000 in savi
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!