You have the following financial market information. You also have 1.57 million Australian dollar (A$) 3.51 million Thai baht (THB) to make a profit due to covered interest arbitrage (CIA). Calculate the profit in A$ or THB if the CIA opportunity exists in the market 5 THB spot rate THB one-year forward rate A$ spot rate A$ one-year forward rate Interest rate on A$ Intoroot roto on THR THB Bid price A$ A$ THB 0.0431 0.0421 22.4115 27.1789 deposit rate 2.43% 6.26% Ask price 0.0607 0.0647 24.922 29.6532 Loan rate 4.19% 8 52% Bid rate (Sell) Ask rate (Buy) 187,641.00

You have the following financial market information. You also have 1.57 million Australian dollar (A$) 3.51 million Thai baht (THB) to make a profit due to covered interest arbitrage (CIA). Calculate the profit in A$ or THB if the CIA opportunity exists in the market 5 THB spot rate THB one-year forward rate A$ spot rate A$ one-year forward rate Interest rate on A$ Intoroot roto on THR THB Bid price A$ A$ THB 0.0431 0.0421 22.4115 27.1789 deposit rate 2.43% 6.26% Ask price 0.0607 0.0647 24.922 29.6532 Loan rate 4.19% 8 52% Bid rate (Sell) Ask rate (Buy) 187,641.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If nominal interest rate is 8.5% and the inflation rate is 3.6% Calculate the real interest rate
A mutual fund has a rate of return for five years of 10%, 14%, 10%, and 22% . Calculate the geometric mean. Round to the nearest tenth of a percent.
The number of users of a certain website (in millions) from 2004 through 2011 follows. Year Period Users (Millions) 2004 1. 2005 2 2006 11 2007 4 57 2008 146 2009 6. 359 2010 7 609 2011 846 (a) Construct a time series plot. 900 900 900 - 900 - 800 800 800 - 800 - 700 700 700- 700 - 600 600 600 600 500- 400- 500 500 500- 400 400 400 - 300- 300 300- 300 - 200- 100- 200 200- 200 100- 100- 100 2 4 6. 8 10 4 6 8 10 8 10 2. 4 6 8 10 Period Period Period Period What type of pattern exists? O The time series plot exhibits a downward linear trend. O The time series plot exhibits an upward linear trend. O The time series plot exhibits a downward curvilinear trend. O The time series plot exhibits an upward curvilinear trend. (b) Using Minitab or Excel, develop a quadratic trend equation that can be used to forecast users (in millions). (Round your numerical values to one decimal place.) T = Millions of Users Millions of Users
K Real-Time Data Analysis Exercise What Are Dollars from the Past Worth Today? Compare how many dollars are needed today to match the purchasing power of dollars in the past. The Consumer Price Index (CPI) for August 2023 was 306.269 and the CPI for August 1988 was 119.000. "Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis The value in August 2023 of $1,500 paid in August 1988 is $. (Round your response to two decimal places)
If the CPI in period 1 is 125 and the CPI in period 2 is 150, then the rate of inflationbetween period 1 and period 2 isA) 20%.B) 25%.C) 30%.D) 50%
i have calculated for number one sevral times and i still do not get the 240 as the answer
Inflation Question Use the following consumer data for housing, energy, and food purchased in the year(s) 2017, 2018, and 2019 in Macroland. Show your work. The base year 2018. E E E Price in 2017 Price 2018 Price 2019 Housing $22,000.00 $22,500.00 $28,000.00 Energy $20,000.00 $21,000.00 $21,200.00 Food $12,000.00 $12,600.00 $13,000.00 а. Calculate the CPI (Consumer Price Index) for 2018. Please interpret the result. b. Calculate the CPI for 2019. Please interpret the result. с. What is the inflation rate between 2017 and 2018? 6 d. What is the inflation rate between 2017 and 2019? II е. What is the inflation rate between 2018 and 2019? f. Calculate the growth rate of the price of housing from 2017 to 2018. g. Comparing housing and food, which is relatively more expensive, 2017 or 2018? Why? ...
If USD is worth 1.30 CAD does it necessarily mean that they have more purchasing power in Canada (i.e. with the same amount of US dollar can they can buy more goods in Canada than USA?)
The consumer price index (CPI) of a country was approximately 200 at the beginning of year 2010. If inflation continued at an average rate of 2.5%, what would the index be at the beginning of year 2021?
Find the saving When the consumption is 230 and the income is 890
QUESTION 3 Annual Fund Returns Over the Past 10 Years Year Return (%) 4.5 6.0 1.5 -20 3 4 15 6 7 19 20 0.0 45 3.5 2.5 5.5 4.0 10 Calculate the geometric mean retur over the 10 years. Give your answer in percent, rounded to two decimal places, so in the format X.XX. Hint, the number zero is not used in the correct answer
Ten years ago, Ginny inherited $50,000 from her grandmother. She decided to invest all of this money in GE stock. Suppose she decides to sell the stock today so she can purchase her first home. The sale price of the stock is $64,500. Suppose that at the beginning of the ten year period the Consumer Price Index (CPI) was 125 and today the CPI is 215. Use this information to determine the difference between the initial investment in today's dollars and the sale price.