Risk-free rate in the United States 0.04/year Risk-free rate in Australia 0.03/year Spot exchange rate 1.67 A$/$Assume the current market futures price is 1.66 A$/$. You borrow 167,000 A$, convert the proceeds to U. S. dollars, and invest them in the U. S. at the risk-free rate. You simultaneously enter a contract to purchase 170,340 A$ at the current futures price (maturity of 1 year). What would be your profit (loss)?

Which of the following actions is most likely to result in a decrease in the money supply? a. the required reserve ratio for banks is decreased. b. the discount rate on overnight loans is lowered. c. the federal reserve bank buys treasury bonds. d. the government sells a new batch of treasury bonds. 2b2t

Beachballs, inc., expects abnormally high earnings for the next three years due to the forecast of unusually hot summers. after the 3-year period, their growth will level off to its normal rate of 6%. dividends and earnings are expected to grow at 20% for years 1 and 2 and 15% in year 3. the last dividend paid was $1.00. if an investor requires a 10% return on beachballs, the price she is willing to pay for the stock is closest to:

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