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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.

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6 0
3 years ago
Flo enters into a contract with Global Shipping Ltd. to insure and ship a painting from France to the United States for a certai
Colt1911 [192]

Answer:

b. Allow the parties to rescind the contract

Explanation:

Flo enters into a contract with Global Shipping Ltd. to insure and ship a painting from France to the United States at a certain amount mentioned in the contract. However, Global Shipping Ltd. makes a mistake in calculating the costs. As a result, a contract price is equal to the amount that is $1,000 less than the true cost. Most likely, a court would allow the parties to rescind the contract.

Option b. is correct.

7 0
3 years ago
Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties decreases by 20%, the q
aalyn [17]

Answer:

Penguin patties and kipples should be advertise together.

Explanation:

The cross-price elasticity formula is:

CPE= % Δq of good A/ %Δp of good B

The CPE of penguin patties and raskels is:

CPE= -22%/-20%

CPE= 1.1

If the CPE is positive, then both goods are substitutes, which means that an increase in price of on good will affect positively the quantity demanded for the other good.

The CPE of penguin patties and kipples:

CPE= 7%/-20%

CPE=-0.35

If the CPE is negative, then both goods are complementary, which means that an increase in price of one good will affect negatively de quantity demanded for the other good.

You should advertise complementary goods together because both could be positively benefited by advertising. If the demand for good A increases, it is probable that the demand for good B increases too. If you advertise substitute goods, people will always prefer one, then the advertising will only be effective for one of the good but not for both.

6 0
3 years ago
Billy Longstreet bought a new car and was a bit uncertain about whether or not he had done the right thing. Two days after he pu
Nonamiya [84]

Answer:

dissonance

Explanation:

Based on the information provided within the question it can be said that this attempt seemed to be aimed at reducing dissonance. This term refers to holds two or more contradictory beliefs, ideas, or values. Which in this scenario, the salesman makes this comment in order to see if Billy was satisfied and knew that his purchase was a good one. If Billy were to decide to sell the car to one of those interested buyers then it is likely because he does not know its value.

8 0
3 years ago
Marcelino co.'s march 31 inventory of raw materials is $85,000. Raw materials purchases in april are $560,000, and factory payro
bija089 [108]

Answer:

Explanation:

1. To determine each Job total costs

Job 306

1.

Opening Direct Material = $30,000

Add Input to production = $139,000

Total Inventory usage = $169,000

2.

Payroll opening balance = $23,000

April payroll = $103,000

Total payroll = $126,000

3.

Overhead opening = $11,500

April Overhead 50% of $103,000 = $51,500

Total Overhead = $63,000

Total costs of 306 = 1 + 2 + 3 = $358,000

**allocate Overhead by Raw Material usage:

Apr direct material for 306 divided by total April direct material x total April Overhead

= 139,000 / 454,000 x $191,000

= $58,478

(We have over applied Overhead by $4,522 using the 50% predetermined rate rule)

Job 307

1.

Opening Direct Material = $41,000

Add Input to production = $200,000

Total Inventory usage = $241,000

2.

Payroll opening balance = $16,000

April payroll = $150,000

Total payroll = $166,000

3.

Overhead opening = $8,000

April Overhead 50% of $150,000 = $75,000

Total Overhead = $83,000

Total costs of 307 = 1 + 2 + 3 = $490,000

**allocate Overhead by Raw Material usage:

Apr direct material for 307 divided by total April direct material x total April Overhead

= 200,000 / 454,000 x $191,000

= $84,141

(We have over applied Overhead by $1,141 using the 50% predetermined rate rule)

Job 308

1.

Opening Direct Material = $0

Add Input to production = $115,000

Total Inventory usage = $115,000

2.

Payroll opening balance = $0

April payroll = $104,000

Total payroll = $104,000

3.

Overhead opening = $0

April Overhead 50% of $104,000 = $52,000

Total Overhead = $52,000

Total costs of 308 to work in progress = 1 + 2 + 3 = $271,000

**allocate Overhead by Raw Material usage:

Apr direct material for 308 divided by total April direct material x total April Overhead

= 115,000 / 454,000 x $191,000

= $48,381

(We have over applied Overhead by $3,619 using the 50% predetermined rate rule)

B.

1. Sales of Job 306 = $690,000

Transfer of costs to Finished Goods : Job 306 = $358,000

Add Adjustments for Overhead over applied = -$4,522

Cost of sales = $353,478

2.

Sales of Job 307 = not yet sold

Transfer of costs to Finished Goods : Job 307 = $490,000

Add Adjustments for Overhead over applied = -$1,141

Cost of goods available for sales = $488,859

3. Sales of Job 308 = still work in progress

Transfer of costs to work in progress : Job 308 = $271,000

Add Adjustments for Overhead over applied = -$3,619

Cost of Work in progress = $267,381

5 0
3 years ago
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