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
tatuchka [14]
3 years ago
11

Suppose the spot and six-month forward rates on the Norwegian krone are Kr 5.79 and Kr 5.94, respectively. The annual risk-free

rate in the United States is 3.59 percent, and the annual risk-free rate in Norway is 5.29 percent. Using the approximation, the six-month forward rate on the Norwegian krone would have to be Kr/_____________$ to prevent arbitrage. (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.)
Business
1 answer:
BigorU [14]3 years ago
7 0

Answer:

the six-month forward rate on the Norwegian krone would have to be Kr/5.8392 $ to prevent arbitrage

Explanation:

The forward rate for no arbitration = Spot rate * ( [1+ difference in risk-free rate of 2 coutries] ^1/2)

= 5.79*(1+(5.29%-3.59%)^1/2) = 5.8392

You might be interested in
Which component of the atmosphere is predicted to rise in the foreseeable future?
tigry1 [53]
This would be the temperature.  Hope this helps!!!
3 0
3 years ago
During the financial crisis of 2007-2008, the Fed engaged in lending to certain large non-bank financial firms in the private se
Delvig [45]

Answer: D. The Fed wanted to limit the inflation risk inherent among financial institutions.

Explanation: An alternative lender, or non-traditional lender, is a loan provider, often a short-term loan lender that is often not heavily regulated by state or federal agencies. ... Secured loans typically have lower interest rates than unsecured non-traditional loans because they minimize the lender's risk of loss.

6 0
3 years ago
Read 2 more answers
Maddox Auto Parts, Inc., contracted with Billy's Mufflers Co. to purchase 35 mufflers from their warehouse supplies. All the muf
juin [17]

Answer: A. at the time of contracting.

Explanation:

Insurable interest is the reasonable concern to obtain insurance against unforeseen events such like losses or death. Insurable interest is when the loss of an object or damage would result in a financial loss.

Based on the information given, Maddox Auto Parts gained an insurable interest in the mufflers at the time of contracting. An individual will gain an insurable interest immediately s contract takes place.

Therefore, the correct option is A.

5 0
2 years ago
Why is budgeting important for a company? What are some reasons that a company would not prepare a budget?
zubka84 [21]

Answer: Budgeting helps to plan, coordinate , delegate responsibility and enhancing clarity in pursuit of an organisation.

Explanation: Every budgets is principally prepared to achieve a set target  but there some limitations which makes it  difficult for some companies to prepare and follow through with a budgeted plan action. Some of these limitations at any given point in time affect the activities of the organisation. It may be traced to Production capacity, shortage of labour, materials, space, Finance and customer demand. This  limitation can at any point in time affect the overall plan of the organisation making it difficult to achieve their set target .

7 0
3 years ago
Read 2 more answers
Rank the five following levels of post secondary education based on the average yearly income .
mr Goodwill [35]
What’s your question? I don’t see the options...
7 0
2 years ago
Other questions:
  • Constitutional scholars have pointed out there is an inconsistency in justice marshalls opinion with respect to what the constit
    15·2 answers
  • Freeman​ Motors, a motorcycle​ manufacturer, had the following contingencies. Determine the appropriate accounting treatment for
    5·1 answer
  • Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting D
    8·1 answer
  • The following data pertains to activity and costs for two months:
    8·1 answer
  • Jackson is conducting interviews to identify patterns in consumer decision making for high-involvement products. Which type of i
    15·1 answer
  • If the money supply is high, interest rates will be
    8·1 answer
  • Company AA had net income of $20,000 in 2017. Compared to previous year, Accounts Receivable decreased by $10,000, Prepaid Rent
    11·1 answer
  • You own a stock portfolio invested 20 percent in Stock Q, 30 percent in Stock R, 15 percent in Stock S, and 35 percent in Stock
    12·1 answer
  • Regarding internationalization strategies in multinational enterprises (MNEs), in situations in which a company's products face
    7·1 answer
  • Identifying Job Application Tools
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!