Business, 06.03.2020 19:03 cabrerafreddy780

(Interest rate parity) Suppose 90-day investments in Europe have an annualized return of 5 percent and a quarterly (90-day) return of 1.25 percent. In the United States, 90-day investments of similar risk have an annualized return of 7 percent and a quarterly return of 1.75 percent. In today's 90-day forward market, 1 euro equals $ 1.33. If interest rate parity holds, what is the spot exchange rate ($/euro)? If interest rate parity holds, the spot exchange rate is nothing $/euro. (Round to four decimal places.)

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 15:10

You want to have $80,000 in your savings account 11 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. if the account pays 6.30 percent interest, what amount must you deposit each year? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers: 1

Answer

Business, 22.06.2019 20:40

Which one of the following statements is correct? process costing systems use periodic inventory systems. process costing systems assign costs to departments or processes for a time period. companies that produce many different products or services are more likely to use process costing systems. production is continuous when a job-order costing is used to ensure that adequate quantities are on hand.

Answers: 2

Answer

Business, 22.06.2019 21:30

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?

Answers: 1

Answer

Business, 23.06.2019 06:50

It is most important to account for factors like warranties and durability when purchasing durable goods or very expensive items

Answers: 1

Answer

You know the right answer?

(Interest rate parity) Suppose 90-day investments in Europe have an annualized return of 5 percent a...

Questions