2. It is end of trading on May 31 The spot USDTRY exchange rate is £15.00 and USDTRY futures with October 31 settlement are priced at £17.30. The continuously compounded risk-free rate is observed as 1.40% per year for lending and 1.60% for borrowing in the US and 18% for lending and 27% for borrowing in Turkey over a six-month maturity. Determine whether arbitrage is possible and if it is, illustrate how.

Answers

Answer 1

If the synthetic forward price is lower than the futures price, there is no arbitrage opportunity.

To determine if arbitrage is possible, we need to compare the cost of constructing a synthetic forward contract using the spot exchange rate and risk-free rates with the actual futures price. If there is a difference, arbitrage opportunities may exist.

Calculate the cost of borrowing USD and lending TRY in the US:

USD borrowing rate: 1.60% per year (continuously compounded)

TRY lending rate: 18% per year (continuously compounded)

Cost of borrowing USD for six months =\(e^(USD borrowing rate * 0.5) - 1\)

Cost of borrowing USD = \(e^(0.016 * 0.5) - 1 = 0.0080104\)

Cost of lending TRY for six months = \(e^(TRY lending rate * 0.5) - 1\)

Cost of lending TRY = \(e^(0.18 * 0.5) - 1 = 0.0905272\)

Calculate the synthetic forward price using the spot exchange rate and risk-free rates:

Synthetic forward price =\(Spot exchange rate * (e^(TRY lending rate * 0.5) / e^(USD borrowing rate * 0.5))\)

Synthetic forward price = \(15.00 * (e^(0.18 * 0.5) / e^(0.016 * 0.5)) = 15.78878\)

Compare the synthetic forward price with the actual futures price:

If the synthetic forward price is greater than the futures price (£17.30), then there is an arbitrage opportunity. The trader can take the following steps to arbitrage:

a. Borrow USD: Borrow USD equivalent to the value of the contract (£17.30) at the USD borrowing rate.

b. Convert USD to TRY: Exchange the borrowed USD for TRY at the spot exchange rate of £15.00.

c. Lend TRY: Invest the TRY at the TRY lending rate for six months.

d. Enter into the futures contract: Sell a futures contract with a settlement date of October 31 to lock in the future exchange rate of £17.30.

e. Receive the synthetic forward price: At the maturity of the futures contract, receive the synthetic forward price of 15.78878 TRY per USD.

f. Repay the USD loan: Convert the received TRY back to USD at the spot exchange rate and use it to repay the USD loan.

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Related Questions

Bonnie claims single with 2 federal withholding allowances, and contributes state tax of 20% of her federal tax. Below is a copy of Bonnie's biweekly statement of earnings. Bonnie knows that her gross earnings and federal tax are correct, but she thinks that her net pay is not correct. Using the fact that Social Security is 6.2% and Medicare is 1.45% of gross pay, explain why the given net pay is not correct. Determine how the error can be corrected, and what the net pay should be.

Answers

Answer:

The given net pay is not correct because Medicare is not 1.45% of her gross pay. The Medicare should be $11.02, making the correct net pay $641.86.

Answer:

The amount of Medicare tax has been calculated incorrectly. The Medicare tax should be $11.02, not $110.20. The actual net pay should be $641.86.

Explanation:

From Ed. :)

You are considering the purchase of a house. The merlace company is approving 15-vear loans at 4.5%. Use the Present Value Excel Template to determine what amount vou could borrow based upon a bucoet with estimated monthly house
ogyments of S1.5002 Enter as a positive number with two decimal olaces fe.. to the sennyi but without the doller sion here:

Answers

To determine the amount that one could borrow based upon a budget with estimated monthly house we will use the Present Value Excel Template as required in the question. Using the Present Value Excel Template, estimated monthly house payments of $1,500 to be $238,337.44.

Here is a step-by-step guide to calculate it:

Step 1: Open a blank Excel sheet and click on File > New > Blank workbook.

Step 2: Click on the ‘Formulas’ tab and select ‘Financial’ in the drop-down menu.

Step 3: Scroll down to ‘Present Value’ and click on it to open the function.

Step 4: Input the required parameters for the calculation of the Present Value, which includes the interest rate, the number of payments, and the payment amount.

Step 5: Use the provided Excel template to calculate the present value of the budget with estimated monthly house payments of $1,500 over a 15-year loan term at 4.5% interest rate. The answer will be $238,337.44.The company, Merlace Company, is approving 15-year loans at 4.5%. Using the Present Value Excel Template, one can determine the amount that they could borrow based upon a budget with estimated monthly house payments of $1,500 to be $238,337.44.

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Which security project team role is filled by individuals who understand the organizational culture, existing policies, and requirements for developing and implementing successful policies

Answers

Answer:

Security Policy Developer

Explanation:

Security Policy Developer is described as personnel or role of a person who worked in a company and has the responsibilities of setting required rules and regulations, allows monitoring and investigations, for other users in the company.

However, to be able to do this, such personnel should understand the organizational culture, existing policies, and requirements for developing and implementing successful policies.

Therefore, the correct answer is the Security Policy Developer

Trevor reported a $63,000 coronavirus-related distribution on his 2020 form 8915-e and spread the income over three years, 2020 through 2022. trevor made repayments of $21,000 in 2020 and in 2021, but only made a repayment of $6,000 in 2022. how much of the distribution, if any, would trevor be required to recognize as income in 2022?

Answers

Trevor made repayments of $21,000 in 2020 and in 2021, but only made a repayment of $6,000 in 2022. Trevor be required to recognize $0 as income in 2022 which means none.

What does revenue recognition mean?

The revenue recognition principle essentially states that revenues are recorded by businesses when the service or good is deemed supplied to the client rather than when the money is received.

What standards are used to recognise income?

The requirements must be met in order for revenue to be recognised in accordance with IFRS are the buyer has assumed the risks and benefits of ownership previously held by the seller. The sold goods are no longer under the seller's control. It is conceivably certain that payment will be taken from the sale of products or services.

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Group level reward systems in which employees are gradually given a major stake in the ownership of corporation.

Answers

Employee stock ownership plans (ESOPs) are a major stake in the ownership of a corporation.

A business enterprise is a corporation—usually a group of human beings or an organization—legal by means of the country to behave as an unmarried entity (a felony entity identified by private and public law "born out of statute"; a legal individual in a legal context) and diagnosed as such in regulation for sure purposes. 10  Early included entities have been hooked up with the aid of a charter (i.e. via an ad hoc act granted with the aid of a monarch or exceeded via a parliament or legislature). maximum jurisdictions now allow the introduction of recent corporations through registration. corporations come in many different sorts but are usually divided through the regulation of the jurisdiction in which they are chartered based totally on two components: by means of whether they could trouble stock, or with the aid of whether they are fashioned to make a profit.

where neighborhood law distinguishes companies with the aid of their capability to trouble inventory, organizations allowed to do so are referred to as stock companies; one type of investment inside the organization is through inventory, and proprietors of inventory are referred to as stockholders or shareholders. corporations no longer allowed to have difficulty stock are called non-inventory corporations; i.e. folks that are taken into consideration as the owners of a non-inventory business enterprise are humans (or other entities) who have acquired clubs within the corporation and are called a member of the corporation.

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I need help asapppppp!

I need help asapppppp!

Answers

B) Internet bank i think

4. 4. Open web steel joists are I. Small lightweight trusses. II. Standardized. III. Fabricated in a shop. IV. Strong both vertically and horizontally. A. I and II C. I, II, and III B. II and ill D. I, ill, and IV

Answers

Open web steel joists are standardized, that are fabricated in a shop. They are made of steel and are designed to be strong both vertically and horizontally.

The open web design of these joists makes them lighter in weight than traditional solid steel beams, which reduces the overall weight of the building structure. Additionally, the open web design allows for easy installation of HVAC, electrical, and plumbing systems.

The standardization of open web steel joists means that they are manufactured to a specific set of standards and can be used in a variety of building designs and applications. The fabrication process involves cutting, welding, and bending steel to create the truss shape, and then applying a protective coating to prevent corrosion.

Overall, open web steel joists are a cost-effective and versatile option for building construction. They offer strength and flexibility, and their lightweight design makes them easy to install and transport. Additionally, the standardized manufacturing process ensures quality and consistency across all applications.

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An international business is a firm that
Part 2
A. hires​ non-U.S. citizens.
B. produces a wide range of products.
C. is not from the United States.
D. engages in international trade or investment.

Answers

Option D: An international business is a firm that engages in international trade or investment.

Therefore, the correct answer is option D. An international business is a company that conducts business across national borders. This can include importing and exporting goods, investing in foreign markets, and operating in multiple countries.

It is not necessarily defined by the nationality of its employees, the range of products it produces, or the country in which it is headquartered. International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more countries.

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Task 2: Savings, Investments, and Risk Management for a Middle-Aged Professional
Talk to a 40-year-old business professional with a family that includes a spouse and children.
This person can be a family member, friend, or mentor. List and describe the savings,
investments and risk management strategies for this phase of life. Describe how financial
planning has changed from the earlier phase of life.

Answers

The investment might be equities or real estate, and risk management tactics like risk aversion could be used to manage the $500 million in savings.

What is Risk management?

Risk management can be thought of as the process through which people recognize and access risk. Eliminating any processes or activities that could negatively impact any of the aforementioned investments or assets constitutes one of the risk management methods that a man could employ. This is known as risk avoidance.

Risk management is essential for me as a 40-year-old company professional in order to be financially viable. Through these processes—wealth creation, development, protection of wealth, and wealth transfer—financial planning evolves from early stages of life.

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What are desirable qualities for office assistants to have?

Answers

Answer:

Good communication skills.

Organization skills.

Team player.

Interpersonal communication skills.

Detail oriented.

Positive, can-do attitude.

Flexible.

Ability to prioritize.

Explanation:

daniel has several properties listed around town. he receives a call from a prospective buyer who is very interested in one of the properties and wants to schedule a showing. what should daniel do?

Answers

Daniel has a number of houses listed in the neighborhood. A potential customer calls to express great interest in one of the properties and request a showing time.

Daniel disclose his agency relationship with the seller to the prospective buyer. a property of the thing. an object's characteristics are its properties. In the Car class, there are several characteristics, or features, that all automobiles share, such as steering wheels, brakes, and color, albeit the values of each characteristic might vary from object to object.

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The percentage of the US labor force that is unemployed is known as the __________.

A.
consumer price index
B.
gross domestic product
C.
national unemployment rate
D.
annual percentage change




Please select the best answer from the choices provided

A
B
C
D

Answers

Answer:

Explanation:

C

Answer:

C. national unemployment rate

Explanation:

i did the quiz, hope this helps<3!!

match each situation with the fraud triangle factor—opportunity, financial pressure, or rationalization—that best describes it.

Answers

The Fraud Triangle Theory is a concept that describes the elements or factors that cause an individual to engage in fraudulent conduct or commit a fraud. It is based on three factors - opportunity, rationalization, and financial pressure. In this theory, all three factors must be present for fraud to occur.

This is because the bookkeeper has decided to divert customer payments to himself and rationalized that he was only borrowing the money and would pay it back soon. SITUATION 5An employee.

Fraud Triangle Factor:  this situation, the factor that best describes the fraud triangle is rationalization. This is because the employee feels that the company is making too much profit at the expense of their hard work and has decided to steal the company's confidential information and trade secrets and use it to start a competing business.

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What is MOST likely TRUE about intellectual property?

A.
It can be a tangible asset.
B.
It is impossible to steal.
C.
It can be invisible.
D.
It does not affect a company’s profits.

Answers

Answer:

The answer is most likely...

A. It can be a Tangible asset

Explanation:

Sorry I was late :l

the short-run supply curve for a firm is a. the portion of mc above atc b. where mc meets atc c. the portion of mc above avc d. where mc meets avc

Answers

The short-run supply curve for a firm is where mc meets avc. The correct option is d.What is a short-run supply curve?In the short run, a supply curve is a graph  producer's   displaying the connection between the cost of a good and the amount of it that firms are ready to manufacture.

The supply curve is derived from the desire to generate a profit, which is determined by subtracting the expense of producing a good from its market value.Short-run supply curveIn the short run, a supply curve is a graph displaying the connection between the cost of a good and the amount of it that firms are ready to manufacture.The short-run supply curve for a firm is where MC (Marginal Cost) meets AVC (Average Variable Cost).

When the market price is greater than the firm's average variable cost, the firm will produce and sell the amount of output where MR equals MC, as stated by the profit maximization rule.Main answer:Thus, the short-run supply curve for a firm is where MC meets AVC.Explanation:In a market economy, the supply curve graphically depicts the quantity of a product that will be supplied by businesses at different costs.The short-run supply curve is derived from the producer's desire to produce a profit, which is determined by subtracting the expense of producing a good from its market value.

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Find the present value of $12,075 if money was invested at 7.2% compounded continuously for
8 years, 9 months.

Answers

The present value of $12,075 is $22672.14 if the money is invested at 7.2% compounded continuously for 8 years and 9 months.

The formula for continuously compounded interest is obtained by computing the limit of this formula as n approaches infinity (according to the notion of continuous compounding):

Continuously compound interest formula

\(A = Pe^{rt}\)

A - Amount

P - Principal

r - Rate

t - Time

P = $12075

r = 7.2 % = 7.2/100 = 0.072

t = 8 years 9 months

= 8 + 9/12 years

= 8 + 0.75

= 0.75 years

A = 12075 × \(e^{(0.072 * 0.75)}\)

= 12075 × \(e^{0.63}\)

= 12075 × 1.87761

= 22672.1408 $

So, the final amount is $22672.14

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Jim and Jane purchased their house a year ago and have been transferred out of town. They paid $275,000 for the property and ended up after expenses with only $225,000. Their percentage of loss on the sale was:

Answers

Answer:

18%

Explanation:

Original cost: $275,000

Selling price: $225,000

Loss: $50,000

50,000/275,000=0.18

0.18x100=18%

:)

What is the polygon address used by the hacker to steal $600 million from the poly network in 2021?.

Answers

Polygon address: '0x5dc3603C9D42Ff184153a8a9094a73d461663214' was used by the hacker to steal $600 million from the poly network in 2021.

The Polygon stack of protocols was created to address the scalability problems of Ethereum. The Polygon network handles transactions on a different, Ethereum-compatible blockchain to address the network's problems. The blockchain-based Poly Network platform reported that a hacker had gained access and stolen more than $600 million in cryptocurrencies.

However, it seemed as though the hacker had given back a few of the stolen goods. According to the network, the three addresses received allegedly stolen assets. According to Poly Network, which enables token exchanges between blockchains, a hacker targeted multiple chains at once and stole more than $600 million in cryptocurrency.

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I NEED HELP ASAP!
Formulate reasons as to why both savers and borrowers may prefer indirect financing to direct financing

Answers

By enabling diversification, specialisation, liquidity, cost-effectiveness, and regulatory protection, indirect financing can be advantageous to both savers and borrowers.

Why do borrowers and savers favour indirect financing?

Because banks can charge lower interest rates than private investors and because there are typically more investors interested in buying bonds than in lending money directly to businesses, indirect finance has the major benefit of making it more affordable for businesses to borrow money.

In indirect finance, how are savers and borrowers related?

A financial intermediary accomplishes this by borrowing money from savers and lenders, and using that money to lend to spenders and borrowers.

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Identify the problem by analyzing the given scenario. An IT software company is losing market share because it fails to launch new products in a timely manner. Decisions are centralized at the top, and employees have little or no voice. One way to solve this problem is to use teams to eliminate ____ in the company.​

Answers

Explanation:

to eliminate their best efforts in the company

Answer:

"bureaucratic barriers"

Explanation:

i got it right on plato

impact of lockdown on business​

Answers

Explanation:

Impact on lockdown on business It has been very tough time for buisness  as far as we know buisness hasnt last long enough and there has been very huge losses.

entperise opportunities ​

Answers

Explanation:

A business opportunity (or bizopp) involves sale or lease of any product, service, equipment, etc. ... The licensor or seller of a business opportunity usually declares that it will secure or assist the buyer in finding a suitable location or provide the product to the purchaser-licensee.

hope this helps you.

reading out loud is an effective strategy for proofreading a written work. True or False

Answers

True. reading out loud is an effective strategy for proofreading a written work.

Reading out loud is indeed an effective strategy for proofreading a written work. When we read silently, our brains have a tendency to fill in missing words or overlook errors. However, reading out loud forces us to pay closer attention to each word and sentence, making it easier to identify grammatical errors, spelling mistakes, awkward phrasing, or unclear sentences.

By hearing the words spoken aloud, we can also detect issues with flow, rhythm, and overall coherence in the writing. Reading out loud engages both our visual and auditory senses, enhancing our ability to spot errors and improve the quality of the written work.

Reading out loud is a valuable technique for proofreading and improving the quality of a written work, making the statement true.

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At Frank's company, the strength of the organizational structure is that the results are based on
the effectiveness of the managers, but its main weakness is costs can be increased due to a
decrease in efficiency. This is an example of which structure?
Osimple
O functional
O divisional
O matrix

Answers

Answer:

divisional

Explanation:

-A simple structure s a structure in which there is little specialization and there is a central authority that controls everything and has the power.

-Functional structure is a structure in which a company is divided in groups according to specialized activities. Because of this specialization, companies with this structure can increase productivity but the communication is rigid and the cooperation between departments is difficult.  

-Divisional structure is a structure in which there are different divisions and each one concentrates on a specific product or service and has all the functions and resources for that. This structure can create inefficiencies because the specialized functions are separated but the results of one division don't affect the other ones.

-Matrix structure is a structure in which employees report to more than one manager and it is used in companies that have different lines to have more flexibility and increase productivity.

According to this information and the statement, the answer is that this is an example of divisional stucture because in this structure each division has its own resources and specialized functions and because of that the results are based on the effectiveness of the managers but as each division has its own specialized functions, this creates inefficiencies.

Which technique is not usually employed in analyzing oligosaccharides and polysaccharides?

Answers

The SDS-PAGE technique is not usually employed in analyzing oligosaccharides and polysaccharides. While polysaccharides often contain several monosaccharides linked together by the glycosidic bonds, oligosaccharides normally contain only a few sugars, usually 3 to 15, bound together by glycosidic linkages. The  Water is a byproduct of the dehydration event that creates glycosidic linkages.

The Monosaccharides, which are little sugar molecules, are the building blocks for both oligosaccharides and polysaccharides. The fundamental distinction between oligosaccharides and polysaccharides is the number of monosaccharides that go into making an oligosaccharide, as opposed to the number of monosaccharides that go into making a polysaccharide.

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Which of the following is not one of the reasons for financial failure? A. Ignorance of current tax laws B. Failure to establish definite goals C. Procrastination D. Investments in mutual funds

Answers

D mutual funds are generally a safe, long term investment with minimal risk.

Ignorance and procrastination of anything could lead to failure.

Investments in mutual funds is not one of the reasons for financial failure. Hence, option D is correct.

What is Investments in mutual funds?

A mutual fund is a business that collects money from many different sources and uses it to buy securities like stocks, bonds, and short-term loans. All of a mutual fund's holdings are referred to as its portfolio. Investors buy shares of mutual funds.

Mutual funds are typically seen as safe investments with little risk and a great method for investors to diversify. When it comes to fees, a mutual fund might not always be the greatest choice for a market participant.

Although there are many different types of mutual funds, most of them fall into one of four basic categories: stock funds, money market funds, bond funds, and target-date funds.

Thus, option D is correct.

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Why very few subsistence economies exist today

Answers

Answer:

As previously mentioned,

subsistence markets are

extremely vulnerable to

external influences.

Because of this

vulnerability, these economies are

becoming more scarce around the

world. In the past, for example, large

populations of indigenous peoples lived

throughout North America.

Why do you think a higher percentage of those over 35 years old invest in the market compared to those under 35? Help please!

Answers

Answer:

Yes I think those over 35 invest in a market compared to people not 35, because they been though school, and have more experience in the market company.

Explanation:

When Shelly hired the housecleaning service, she asked them to use her hypoallergenic cleaning supplies. Instead the workers used their own supplies and Shelly had to lose a day from work because of her allergic reaction to the smell of the cleaners. When Shelly looked at the service guarantee that the workers had left, she found that she could get a reimbursement for all of her out-of-pocket expenses if she had a notarized letter from her doctor describing her condition and her reaction, an affidavit from the workers that they had used the wrong cleaners and another notarized statement that she would not have become ill if the workers had used the right cleaners. This service guarantee is ineffective because it is NOT:

Answers

Answer: Easy to invoke and collect

Explanation:

To make claims on services and get paid can be a stressful journey sometimes. As most organization would require you provide much evidence for the claims you are making. What makes it more stressful is the number of organizations involved to make the claims a success, this is why most times they are not easy to invoke and reclaim. Most persons would rather bear the loss than go through the process. This is what Shelly has to consider while making her claim.

Explain how joe has a $175,000 mortgage on a home that is selling for $200,000

Answers

Answer:

Joe has a $175,000 mortgage on a home that is selling for $200,000, which means that he has $25,000 in equity in the home.

Explanation:

The equity in a home is the value of the home minus any outstanding loans or mortgages. In this case, the value of Joe's home is $200,000, and the amount he owes on his mortgage is $175,000, which leaves him with $25,000 in equity. This equity represents the amount of money Joe would receive if he were to sell the home and pay off the mortgage. If the value of the home were to increase, Joe's equity would increase as well. Conversely, if the value of the home were to decrease, Joe's equity would decrease, and he could end up owing more on his mortgage than the home is worth, which is known as being "underwater" on a mortgage.

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Other Questions
Elizabeth works as a server in coffee shop, where she can earn a tip (extra money) from each customer she serves. The histogram below shows the distribution of her 60 tip amounts for one day of work. 25 g 20 15 10 6 0 0 l0 15 20 Tip Amounts (dollars a. Write a few sentences to describe the distribution of tip amounts for the day shown. b. One of the tip amounts was S8. If the S8 tip had been S18, what effect would the increase have had on the following statistics? Justify your answers. i. The mean: ii. The median: 1. Suppose the semiannually compounded twelve-month and eighteen-month spot rates are observed as 18% and 20%, respectively. Calculate the value today of a six-month forward rate agreement in which you will receive a fixed rate of 22% compounded semiannually over a six-month period that begins one year from today and pay the then prevailing six-month spot rate on a notional principal of 1,0000,000. MULTIPLE CHOICE QUESTIONWhich of the following are components of mostviruses? Select all that apply.A. Lipid envelopeB. Cell wallC. Attachment proteins orenvelope proteins (sometimesalso called virus spikes)D. protein capsid which contains.the genetic material.E. DNA or RNA as geneticmaterial the possible degree of a polynomial function is at least one more, or 3 more,or 5 more,... than the total number of local maximas and minimas The eventual existence of arbitrage limits is a relevantdeterminant of the convergance trading strategy returns. Do youagree? Explain your answer. When evaluating the following project, what is its paybackperiod?Year Project A0 ($13,500)1 20002 40003 55004 6000A. 2.85 yearsB. 3.65 yearsC. 3.33 yearsD. 3.15 years Construct an isosceles triangle whose base is 6cm and altitude is 3cm. Then draw another triangle whose sides are 1 1/3times the corresponding sides of the isosceles triangle