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lora16 [44]
3 years ago
10

Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is ×120 = $1, and the New York yen/dollar exchange rate a

t the same time is ×125 = $1. A dealer makes a profit by buying a currency low and selling it high. The dealer has engaged in a(n):________.
Business
1 answer:
Viefleur [7K]3 years ago
8 0

Answer:

This question lacks answers

A. currency swap.

B. arbitrage.

C. backwardation.

D. straddle.

<u>The answer is </u><u>b.</u>

Explanation:

Arbitrage is a common practice used to gain profits from inefficient markets. Since most financial markets are inefficient by nature, dealers and similar business entities that have an interest in this kind of business practice.

The profit in arbitrage is based on the <u>imbalance in the two prices</u> on each market respectively. The term is mainly used for financial markets and various financial instruments (securities, bonds, currencies).

In the example above, the dealer becomes an arbitrageur by making a profit from the difference in the yen/dollar exchange rate in two markets (NY and London.)

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A landfill site produces an obnoxious odor. Homes downwind of the site rent for $1000 per month while homes upwind of the site r
Eddi Din [679]

Answer:

External cost

Explanation:

External cost is a cost that is gotten from any economic transaction, in which the person or entity bearing the cost is not directly involved in. They are also known as spill over costs. The offensive odor in the question has generated an external cost at different locations from the site, the cost of rent differs. External costs usually have negative effects, from our question we can see that the odor from the landfill site must be intolerable for people residing in the area.

5 0
2 years ago
A deposit of $100,000 is made to an investment account today. At the end of each of the next four years, $10,000 must be paid ou
andrey2020 [161]

Answer:

14.06%

Explanation:

Assume their is a cash out flow today of $100000, and next four year annual cash inflow of 10000 and 120000 at the end of year 4.

We can use IRR formula to find the interest rate.

year                            cashflow

0                                   -100000

1                                      10000

2                                     10000

3                                     10000

4                                     130000

IRR                                 14.06%

The calculation has been done on excel sheet

8 0
3 years ago
Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia.
Arisa [49]

Answer: (A) Greenfield investment

Explanation:

 The greenfield investment is one of the type of FDI ( Foreign direct investment) that helps in constructing the various types of new production facilities in an organization.

The main objective of the greenfield investment process is to making the manage the investor control process and also form different types of opportunities for managing the partnerships in the market.

According to the given question, the Greenfield investment process is helps in establishing the various types of new operation in Indonesia and it is the form of foreign direct investment.

 Therefore, Option (A) is correct answer.

7 0
3 years ago
What is nursing ?why is it needed?​
Free_Kalibri [48]

Answer: What type of nursing?

3 0
3 years ago
Read 2 more answers
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frutty [35]
It's false! They have to hear all of them
5 0
3 years ago
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