Suppose:

₤1 buys €1.50 in ny, tokyo, and london

$1 buys ¥100 in ny, tokyo, and london

₤1 buys ¥150 in ny, tokyo, and london

is there an opportunity for two-point arbitrage?

a) no, because the direct rates are the same in all markets
b) yes, because the direct rates are the same in all markets
c) yes, because the direct rates differ in all markets
d) no, because the direct rates differ in all markets

When it is 4: 00 a.m. in halifax, it is 1: 00 p.m. in karachi, and when it is 9: 00 a.m. in karachi, it is 5: 00 a.m. in warsaw. mary left halifax to fly to karachi, but she accidentally left her watch on warsaw time. according to mary’s watch, she left halifax at 9: 40 p.m. on monday. the local time when she arrived at karachi was 3: 00 p.m. tuesday. how long was mary’s flight? a. 9 hours, 20 minutes b. 13 hours, 20 minutes c. 14 hours, 20 minutes d. 17 hours, 20 minutes

An allergy products superstore buys 6000 of their most popular model of air filters each year. the price of the air filters is $18. the cost of ordering and receiving shipments is $12 per order. accounting estimates annual carrying costs are 20% of the price. the supplier lead time is 2 days. the store operates 240 days per year. each order is received from the supplier in a single delivery. there are no quantity discounts. what is the store’s minimum total annual cost of placing orders & carrying inventory?

What role do business cycles play in a market economy