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
Goryan [66]
2 years ago
10

The three steps which will create triangular arbitrage profit are as follows: first step, convert ____; second step, convert ___

____, and third step, convert ______.
a) USD to GBP; CHF to GBP; CHF to USD
b) USD to GBP; GBP to CHF; CHF to USD
c) USD to CHF; GBP to CHF; GBP to USD
d) USD to CHF; CHF to GBP; GBP to USD
Business
1 answer:
Vladimir [108]2 years ago
7 0

Answer:

The correct option is b) USD to GBP; GBP to CHF; CHF to USD.

Explanation:

A triangular arbitrage can be described as the act of taking advantage of a foreign exchange market arbitrage opportunity created by a pricing difference between three different currencies.

A triangle arbitrage method entails three deals, with the first currency being converted to a second, the second currency being converted to a third, and the third currency being converted to the first.

In the question, USD is the first currency, GBP is the second currency, and CHF is the third currency. Based on the explanation above, the three steps which will create triangular arbitrage profit are as follows: first step, convert <u>USD to GBP</u>; second step, convert <u>GBP to CHF</u>, and third step, convert <u>CHF to USD</u>.

Therefore, the correct option is b) USD to GBP; GBP to CHF; CHF to USD.

You might be interested in
Establishing a 1%/10 Net 30 term would be considered a benefit to a favorite customer and should typically be offered after they
Elodia [21]
The statement is false. It would be an advantage to both the client and the organization. This would mean if the client needs a markdown from the provider they would need to pay the receipt inside 10 days to get the rebate, and this would then enable the organization to get their cash speedier.
6 0
3 years ago
In a spreadsheet, there are many features that help you edit quickly.<br> O True<br> O False
Lapatulllka [165]

Answer:True

Explanation:There are many form a quick editing hoped this helped ;) ... In a spreadsheet, there are many features that help you edit quickly.

5 0
3 years ago
Read 2 more answers
A U.S. firm holds an asset in Great Britain and faces the following scenario:
Lady_Fox [76]

Answer:

C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.

Explanation:

given data

                     State 1           State 2               State 3

Probability      25%            50%                      25%

Spot rate      $ 2.50 /£    $ 2.00 /£            $ 1.60 /£

P*                   £ 1,800       £ 2,250             £ 2,812.50

P                     $4,500          $4,500               $4,500

solution

company holds portfolio in pound. so to get hedge, they will sell that of the same amount.

we get here average value of the portfolio that is

The average value of the portfolio = £ (0.25*1800 + 0.5*2250 + 0.25*2812.5)

The average value of the portfolio = 2278.13

so correct option is C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.

3 0
3 years ago
If the variable costs of producing two books are $100, what is the marginal cost of producing one more book?
Ierofanga [76]

Answer:Hi Martina, okie anyway Im taking the test rn too I just answered Tanya, its $25

Explanation:

1 book= 50

2 books= 100

100-50=50

Then 50/2=25

3 0
3 years ago
Riggs Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year, operating at normal capaci
faltersainse [42]

Answer:

It is more convenient to produce the sails in house.

Explanation:

Giving the following information:

Riggs purchases sails at $ 250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $ 100 for direct materials, $ 80 for direct labor, and $ 90 for overhead. The $ 90 overhead includes $ 78,000 of annual fixed overhead that is allocated using normal capacity.

Because there will not be an increase in fixed costs, we will not have them into account.

Variable overhead= 90 - (78,000/1,200)= 25

Unitary variable cost= 100 + 80 + 25= 205

It is more convenient to produce the sails in house.

8 0
3 years ago
Other questions:
  • Select all items that describe command economies.
    13·2 answers
  • ) A health insurance will pay for a medical expense subject to a $100 deductible. Assume that the amount of the expense is expon
    11·1 answer
  • Sales volume plays a large role in determining per unit costs in the cost-plus pricing approach.
    5·1 answer
  • Following is the income statement for Target Corporation. Prepare Target's common-size income statement for the fiscal year ende
    15·1 answer
  • Home Bepot Inc. has a cost of equity of 11.3 percent. The company has an aftertax cost of debt of 4.9 percent, and the tax rate
    6·1 answer
  • If you own a business that operates in a certain building then you are liable for the condition of the building.
    13·1 answer
  • Peter wishes to create a retirement fund from which he can draw when he retires and the same amount at each anniversary of his r
    7·1 answer
  • Terry traveled to a neighboring state to investigate the purchase of two hardware stores. His expenses included travel, legal, a
    13·1 answer
  • Which of these is NOT a concern for consumers in times of inflation?
    14·1 answer
  • The minimum amount (planned) of fuel to be aboard a domestic flight within the 48 contiguous united states, after reaching the m
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!