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irakobra [83]
3 years ago
12

A three-month forward contract on a stock index is trading at $1000. The current index level is $985.1. Assuming a continuously

compounded interest rate of 5%. Additionally, assume that the stock index does not pay any dividends. Which one of the following statements reflects a potential arbitrage strategy:
I. Long the forward contract, short the stock index, and lend at the risk-free rate
II. Short the stock index and lend at the risk-free rate, while entering in a forward contract agree- ment to purchase the asset in three months for $1000.
(a) I alone
(b) II alone
(c) I and II
(d) None of the above
Business
1 answer:
timofeeve [1]3 years ago
4 0

Answer:

d

Explanation:

ddddddddddddddddddddddd

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In determining whether to issue a loan, banks are not allowed to ask about an applicant's
Firlakuza [10]

Answer:

country of origin.

Explanation:

Banks have a set of requirements that borrowers need to meet to qualify for a bank loan. The banks will ask questions to determine if the customer is eligible for a loan. Most of the questions pertain to the purpose of the loans and the customer's ability to repay.

The bank will ask about employment history, credit history, tax information, personal information, the purpose of the loan,  collateral, and other questions related to the ability to repay. A person's country of origin is unnecessary and may elicit elements of discrimination.

3 0
3 years ago
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A U.S. exporter sells $150,000 of furniture to a Latin American importer. The exporter requires the importer to obtain a letter
grandymaker [24]

Answer:

5.52%

Explanation:

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To get the exporter's true effective annual financing cost, we have:

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6 0
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Mr Howard opens a restaurant that sells sandwiches and the cost of the material to make the sandwich is 5.00. He wants a 40% mar
Tema [17]

Answer:

$3.56

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4 0
3 years ago
Medical profession is a very sensitive profession.Do U agree?Give 5 reason​
Anna [14]

Answer:

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3 years ago
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kirill [66]

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Explanation:

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