Homework Answers
Solution :-
Proceeds on sale of 1,000,000 USD can be calculated as ;
=1000000×22.10= MXN 22,100,000
Return on investment=1.25% for 3 months
Value after the semester will be ;
= Investment value × (1+interest for 3 months)2
=22,100,000×(1+0.0125)2= MXN 2265953.125
$ proceeds when trade is closed
= 2265953.125/22.05=$1027480.86734
$ payable after 3 months when $ borrowed;
=1000000×(1+0.000676)2 =$1001352.45698
Profit=$ from trade - $ payable
Profit =$1027480.86734-1001352. 45698
Profit =$26,128.41036 = $26128.0000
Thus,the profit is $26130.0000(Select Option a)
Add Answer to:
Question 9 8 pts Suppose you do a carry trade for one semester in USDMXN in...
9 Suppose you do a carry trade for one semester in USDMXN in which you make...
9 Suppose you do a carry trade for one semester in USDMXN in which you make a short sale of 1,000,000 USD at 22.10 MXN/USD. If you closed this trade at 22.05 MXN/USD and the effective 3-month rates for loans and deposits is 1.2500% for MXN and 0.0625% for USD, what are your profits? (Use six decimals for your calculations but round your final answer to the nearest unit of dollar) 26,230.0000 262,306.0000 56,810.0000 0 -26, 171.0000
Suppose you do a carry trade for one semester in USDMXN in which you make a...
Suppose you do a carry trade for one semester in USDMXN in which you make a short sale of 1,000,000 USD at 22.10 MXN/USD. If you closed this trade at 22.05 MXN/USD and the effective 3-month rates for loans and deposits is 1.2500% for MXN and 0.0625% for USD, what are your profits? (Use six decimals for your calculations but round your final answer to the nearest unit of dollar) A) 26,230.0000 B) 262,306.0000 C) 56,810.0000 D) -26,171.0000
Please solve and show work fully for a rating. Thank you. 09 8$ Suppose you do...
Please solve and show work fully for a rating. Thank you.
09 8$ Suppose you do a carry trade for one semester in USDMXN in which you make a short sale of 1,000,000 USD at 22.10 MXN/USD. If you closed this trade at 22.05 MXN/USD and the effective 3-month rates for loans and deposits is 1.2500% for MXN and 0.0625% for USD, what are your profits? (Use six decimals for your calculations but round your final answer to the nearest...
BF2207 Question 2 Suppose that, six months ago, you sold a call option on 1,000,000 euros...
BF2207 Question 2 Suppose that, six months ago, you sold a call option on 1,000,000 euros (EUR) with an expiration date of six months and an exercise price of 1.1780 United States dollars (USD). You received a premium on the call option of 0.045 USD per unit. Assume the following: • Money market interest rates for EUR are constant through time and equal 5% for all maturities. • Money market interest rates for USD are constant through time and equal...
Question 9 1 pts You are saving for retirement. On April 1, you deposit $516 in...
Question 9 1 pts You are saving for retirement. On April 1, you deposit $516 in your target-date fund. By May 15, your initial deposit is worth $526 and you deposit an additional $292 at that time. On August 15, your account shows a value of $792 and you make a further deposit of $256. On November 30, your account shows a balance of $1,052. What is your time-weighted return (in percent) for the period April 1 - November 30?...
Question 9 5 pts You will deposit $150 each of the next five years (the first...
Question 9 5 pts You will deposit $150 each of the next five years (the first deposit will occur one year from today, and there will be a total of 5 equal deposits) into an account that pays a 7.3% effective annual rate. Six years from today, you wish to have exactly $1000 in the account. You would need to deposit an additional $_ _into the account six years from today to meet that goal. [Hints: Make a timeline! There...
8 pts Question 6 Suppose that you are just about to retire, and you just turned...
8 pts Question 6 Suppose that you are just about to retire, and you just turned 65. Your personal and family health history is such that you forecast that you will live to age 78. In retirement, you would like to have purchasing power of $60,000 (i.e., real dollars) before taxes. Suppose, for our example, that you anticipate receiving $20,000 in inflation-adjusted Social Security payments each year. Hence, your portfolio will need to provide $40,000 in real dollars each year....
ollar on the number 4. (8 pts) You play roulette betting one dollar on the 5 each time. The bet pays 35 to 1. You...
ollar on the number 4. (8 pts) You play roulette betting one dollar on the 5 each time. The bet pays 35 to 1. You have a 1 in 38 chan win. On average, you will lose playing this game and each play will cost you approximately- cents. (Round to the nearest cent) Suppose you play roulette 64 times, betting a dollar on the number 5 each time, your expected net gain is dollars. dollars. Using the short-cut, the SD...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1)...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The LM curve represents A) the single level of output where the goods market is in equilibrium. B) the combinations of output and the interest rate where the goods market is in equilibrium. C) the single level of output where financial markets are in equilibrium. D) the combinations of output and the interest rate where the money market is in equilibrium. E) none of...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The LM curve represents A) the single level of output where the goods market is in equilibrium. B) the combinations of output and the interest rate where the goods market is in equilibrium. C) the single level of output where financial markets are in equilibrium. D) the combinations of output and the interest rate where the money market is in equilibrium. E) none of the...
9 Suppose you do a carry trade for one semester in USDMXN in which you make a short sale of 1,000,000 USD at 22.10 MXN/USD. If you closed this trade at 22.05 MXN/USD and the effective 3-month rates for loans and deposits is 1.2500% for MXN and 0.0625% for USD, what are your profits? (Use six decimals for your calculations but round your final answer to the nearest unit of dollar) 26,230.0000 262,306.0000 56,810.0000 0 -26, 171.0000
Please solve and show work fully for a rating. Thank you.
09 8$ Suppose you do a carry trade for one semester in USDMXN in which you make a short sale of 1,000,000 USD at 22.10 MXN/USD. If you closed this trade at 22.05 MXN/USD and the effective 3-month rates for loans and deposits is 1.2500% for MXN and 0.0625% for USD, what are your profits? (Use six decimals for your calculations but round your final answer to the nearest...
BF2207 Question 2 Suppose that, six months ago, you sold a call option on 1,000,000 euros (EUR) with an expiration date of six months and an exercise price of 1.1780 United States dollars (USD). You received a premium on the call option of 0.045 USD per unit. Assume the following: • Money market interest rates for EUR are constant through time and equal 5% for all maturities. • Money market interest rates for USD are constant through time and equal...
Question 9 1 pts You are saving for retirement. On April 1, you deposit $516 in your target-date fund. By May 15, your initial deposit is worth $526 and you deposit an additional $292 at that time. On August 15, your account shows a value of $792 and you make a further deposit of $256. On November 30, your account shows a balance of $1,052. What is your time-weighted return (in percent) for the period April 1 - November 30?...
Question 9 5 pts You will deposit $150 each of the next five years (the first deposit will occur one year from today, and there will be a total of 5 equal deposits) into an account that pays a 7.3% effective annual rate. Six years from today, you wish to have exactly $1000 in the account. You would need to deposit an additional $_ _into the account six years from today to meet that goal. [Hints: Make a timeline! There...
8 pts Question 6 Suppose that you are just about to retire, and you just turned 65. Your personal and family health history is such that you forecast that you will live to age 78. In retirement, you would like to have purchasing power of $60,000 (i.e., real dollars) before taxes. Suppose, for our example, that you anticipate receiving $20,000 in inflation-adjusted Social Security payments each year. Hence, your portfolio will need to provide $40,000 in real dollars each year....
ollar on the number 4. (8 pts) You play roulette betting one dollar on the 5 each time. The bet pays 35 to 1. You have a 1 in 38 chan win. On average, you will lose playing this game and each play will cost you approximately- cents. (Round to the nearest cent) Suppose you play roulette 64 times, betting a dollar on the number 5 each time, your expected net gain is dollars. dollars. Using the short-cut, the SD...
Most questions answered within 3 hours.
-
Two kg of ice at -15 °C are placed in a 2 kg bath of water...
asked 2 minutes ago -
Use the following set of observed frequencies to test the
independence of the two variables. Variable...
asked 2 minutes ago -
Please Identify the Term "Determinism" in Psychology
asked 1 minute ago -
Describe the following with suitable
examples.
1- Security Policy Heterogeneity
2-Security Model Heterogeneity
3-Security Mechanism Heterogeneity...
asked 2 minutes ago -
The table below represents the number of republicans, democrats
and independent voting on a specific issue....
asked 6 minutes ago -
List and compare different forms of passive transport and active
transport.
asked 14 minutes ago -
In Netherland Dwarf rabbits, dwarf size is determined by allele
N, and normal-size by allele n....
asked 21 minutes ago -
During Heaton Company’s first two years of operations, it
reported absorption costing net operating income as...
asked 35 minutes ago -
Consider testing the
hypotheses:
H0: p = 0.56
H1: p > 0.56
where p is
the...
asked 38 minutes ago -
In a two-factor analysis of variance a main effect is defined as
____.
a. the unique...
asked 46 minutes ago -
A bank's loan officer rates applicants for credit. The ratings
are normally distributed with a mean...
asked 46 minutes ago -
Fill in the following information for Adipic Acid: molecular
weight, g or ml, mole, melting point,...
asked 51 minutes ago