mrawan

Volume of water (INCLUDING UNITS) in 10 mL graduated cylinder after pouring 1 tsp: 

 
Trial 1: _____________ Trial 2: _____________ Trial 3: _

Suppose you are working for an international investment firm, and you observe that the annualized return for 3-year Australian corporate bonds is 2.83% while and the annualized 3-year French corporate bonds is 3.58%.

1. You get the following quotes:

EA$/€ = 1.3653

3-year forward rate: FA$/€, 3-year = 1.3894

Is there any arbitrage opportunity?  If yes, what would you do?  If not, why?  Explain.  (8 points)

Note:  Assume your firm does not have any funds denominated in A$ and € and remember to do the interest rate conversion into appropriate time period (use the simple compounding method to covert annualized interest rate to the appropriate time period).

1. Suppose your firm can move the markets (i.e., change the spot exchange rate, the forward exchange rate, and the corporate bond yields in both countries), what happens to these four variables after the transactions you carried in part (a)? Explain in words.  (8 points)
2. Find the A$/€ spot rate such that your firm will be indifferent between holding the Australian corporate bonds and the French corporate bonds. (4 points)

Note:

• Keep your answers to 4 decimal points if needed.
• This question requires you to use the precise form of covered interest rate parity.
• Instead of the assumption made in class (individuals are small players and cannot affect the exchange rates and interest rates), the firm in this question is a LARGE player that has the ability to change the exchange rates and the corporate interest rates when it carries transactions in the spot exchange market, the forward exchange market, and corporate bonds markets in Australia and France.
• Use the subscripts “A” and “F” to represent all the variables and terms used for Australia and France respectively in your written explanation. You must use these notations; otherwise, you will receive a grade of ZERO for the whole question. 

Clints salary increased from $ 22,000 to 528,600 over a three-year period. Heler's salary increased from $ 29,000 to $ 37,700 over the same period. Whose salary increased more in absolute terms? In relative terms? Explain.

Calculate the pH of a buffer solution made dissolving 0.150 moles of sodium dihydrogen phosphate (Na2P04) and 0.100 moles of sodium hydrogen phosphate (Na2HP04)

in enough water to make 0.500 L of solution. Ka = 6.3 x10-8

List two advantages of the U.S. customary units system. 

Johns car averages $38.6 miles per gallon. If gas cost $2.20 per gallon and he drives 500 miles to see his friend, how much money will he need for gas?

Answer: _________

What role (if any) should youth workers play in legitimizing, understanding and promoting tolerance of youth sub-cultures among adults in the community? Explain your stance.

What are the positive and negatives of being a girl involved in the sk8ing subculture, support your answer.

Suppose that you enter into a six-month forward contract on a non-dividend-paying stock when the stock price is $250 and the risk-free interest rate (with continuous compounding) is 8% per annum. What is the forward price?

b)    If you find some dealers who post a 6-month forward offer price at $255, is there an opportunity to arbitrage? How much arbitrage profit can you earn from one share of this stock?

c)    If you can only find dealers who post 6-month forward offer prices higher than your calculated in Part a), can you arbitrage to earn a sure profit?

d)   Alternative to Part c), suppose you can only find dealers who post 6-month forward bid prices lower than your calculated in part a), can you arbitrage to earn a sure profit?

Denise teaches obedience classes. Last session 11/22 of the dogs passed her class. This session, 9/12 of the dogs passed her class. What fraction more of the dogs passed her class last session? Write an equation to represent the situation.