subject
Business, 18.10.2019 19:00 ianmartin6080

Suppose that the interest rate of government bonds in the euro area at 1 year maturity is 10%, or i€ =0.10 at the same time , the interest rate of government bonds in the usa at 1 year maturity is 5%, or i$=0.05

suppose that the spot exchange rate between euro € and us dollar $ is, in us dollars, 1€=$1.37
the forward rate - according to the covered interest parity -

a)selling at forward premium

b)equal to the spot rate

c)none of the above

d)selling at forward discount

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 23:00, astultz309459
Abeverage company puts game pieces under the caps of its drinks and claims that one in six game pieces wins a prize. the official rules of the contest state that the odds of winning a prize are is the claim "one in six game pieces wins a prize" correct? why or why not? 1: 6.
Answers: 1
image
Business, 23.06.2019 02:00, simplychan
Present values. the 2-year discount factor is .92. what is the present value of $1 to be received in year 2? what is the present value of $2,000? (lo5-2)
Answers: 3
image
Business, 23.06.2019 07:50, zitterkoph
Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?
Answers: 3
image
Business, 23.06.2019 11:30, salvadorjr1226p4zkp3
3. why would the sale of counterfeit products through its sites be damaging to alibaba?
Answers: 2
You know the right answer?
Suppose that the interest rate of government bonds in the euro area at 1 year maturity is 10%, or i€...

Questions in other subjects:

Konu
Mathematics, 14.09.2020 01:01
Konu
English, 14.09.2020 01:01
Konu
Mathematics, 14.09.2020 01:01
Konu
Chemistry, 14.09.2020 01:01
Konu
Mathematics, 14.09.2020 01:01
Konu
Biology, 14.09.2020 01:01
Konu
Mathematics, 14.09.2020 01:01
Konu
Biology, 14.09.2020 01:01
Konu
Mathematics, 14.09.2020 01:01
Konu
Mathematics, 14.09.2020 01:01