9 Suppose you do a carry trade for one semester in USDMXN in which you make...
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
Question 9 8 pts 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 0.0676% for USD, what are your profits? (Use six decimals for your calculations but round your final answer to the nearest unit of dollar) 26,128.0000 261,286.0000 55,790.0000 0-26,070.0000
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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...
Problem 5-9 Present Value of a Perpetuity (LG5-5) What's the present value, when interest rates are 8.5 percent of a $90 payment made every year forever? (Round your answer to 2 decimal places.) Present value Problem 5-3 Future Value of an Annuity (LG5-2) What is the future value of a $990 annuity payment over five years if interest rates are 9 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value Problem 5-31...
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 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...
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Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia - a small, young country on the east coast of the Baltic Sea -has recently earned the title of a "tiger". After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a...
Payable: Use the t-accts below to record the following entries. If you get stuck, carefully review the online and text examples. On September 1t, Geo Inc. borrows $2,400 from State Bank and signs a 10 month short-term note payable. The interest rate on the note is 7%. Even though the note is only for 10 months, the interest rate is an annual rate (see interest calculations below). a) Record the entry to borrow the money from the bank. b) Next,...
SECTION A (50) Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia – a small, young country on the east coast of the Baltic Sea – has recently earned the title of a ‘‘tiger’’. After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a planned to a market economy. The first decade proved...