Question
In: Finance
Use the following information to answer the following 3 questions Direct Market for C$/INR Bi
- Use the following information to answer the following 3 questions
Direct Market for C$/INR Bids asks
Deutsche Bank’s quote: C$.0855/INR C$.0865/INR
Barclays’ quote: C$.0857/INR C$.0864/INR
CSFB’s quote: C$.0860/INR C$.0871/INR
Markets for INR/$ and C$/$
dollar bids dollar asks CAD bids CAD asks
Deutsche Bank’s quote: INR 13.0/$ INR 13.3/$ $.865/C$ $.871/C$
Barclays’ quote: INR 13.1/$ INR 13.5/$ $.866/C$ $.872/C$
CSFB’s quote: INR 13.2/$ INR 13.35/$ $.867/C$ $.875/C$
- What is the best direct C$/INR ask price? Compute the best indirect C$/INR bid price. (These are the clockwise numbers)
- What is the best direct C$/INR bid? Compute the best indirect C$/INR ask price. (These are the counter-clockwise numbers)
- Determine if there is a triangular arbitrage opportunity. (Look clockwise and counter-clockwise) If there is an arbitrage opportunity, do it! How much risk-free arbitrage profit is there if you start with $1,000,000 and make one trip around the triangle?
Solutions
jeff jeffy answered 7 months agoRelated Solutions
What is the best direct C$/INR ask price? Compute the best indirect C$/INR bid price.
Use the following information to answer the following 3
questions
Direct Market for
C$/INR
Bids
asks
Deutsche Bank’s
quote:
C$.0855/INR C$.0865/INR
Barclays’ quote:
C$.0857/INR C$.0864/INR
CSFB’s
quote:
C$.0860/INR C$.0871/INR
Markets for INR/$ and C$/$
dollar
bids
dollar
asks
dollar bids
dollar asks
Deutsche Bank’s
quote:
INR 13.04/$ INR 13.36/$
C$1.125/$
C$1.131/$
Barclays’
quote:
INR 13.11/$ INR
13.52/$ C$1.126/$
C$1.130/$
CSFB’s
quote:
INR 13.22/$ INR
13.35/$
C$1.123/$ C$1.134/$
What is the best direct C$/INR ask price? Compute the best
indirect C$/INR...
Required information Use the following information to answer questions [The following information applies to the questions...
Required information
Use the following information to answer questions
[The following information applies to the questions
displayed below.]
The following information is available for Lock-Tite Company, which
produces special-order security products and uses a job order
costing system.
April 30
May 31
Inventories
Raw materials
$
31,000
$
30,000
Work in process
9,500
18,200
Finished goods
54,000
34,000
Activities and information for
May
Raw materials purchases (paid
with cash)
197,000
Factory payroll (paid with
cash)
200,000
Factory overhead
Indirect materials...
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The market for good x can be represented by:
Qd= 10 -P
(note that it might be easier to graph if you rearrange the
terms as P=10-Qd)
Qs= -4 +P
(and this might be easier to graph if you rearrange terms as
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Calculate consumer surplus in this market.
a
CS= 9
b
CS= 4.5
c
none of the answers provided here are correct
d
CS= 3
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note: all sales are credit sales
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2016
2017
Sales
$ 975,000
$ 1,072,500
less Cost of Goods Sold:
325,000
346,125
Gross Profit
650,000
726,375
Operating Expenses
575,000
609,500
Earnings before Interest & Taxes
75,000
116,875
Interest exp
25,000
31,000
earnings before Taxes
50,000
85,875
Taxes
20,000
34,350
Net Income
$ 30,000
$
51,525
Balance Sheet info:
12/31/2016
12/31/2017
Cash
60,000
$ 63,600
Accounts Receivable
80,000
$ 84,000
Inventory...
Use the following information to answer questions [The following information applies to the questions displayed below.]...
Use the following information to answer questions [The following
information applies to the questions displayed below.] The
following information is available for Lock-Tite Company, which
produces special-order security products and uses a job order
costing system. April 30 May 31 Inventories Raw materials $ 48,000
$ 48,000 Work in process 9,900 19,700 Finished goods 67,000 33,700
Activities and information for May Raw materials purchases (paid
with cash) 194,000 Factory payroll (paid with cash) 150,000 Factory
overhead Indirect materials 14,000 Indirect...
Use the following information to answer questions [The following information applies to the questions displayed below.]...
Use the following information to answer questions
[The following information applies to the questions
displayed below.]
The following information is available for Lock-Tite Company, which
produces special-order security products and uses a job order
costing system.
April 30
May 31
Inventories
Raw materials
$
44,000
$
54,000
Work in process
9,500
18,800
Finished goods
59,000
34,000
Activities and information for May
Raw materials purchases (paid with cash)
185,000
Factory payroll (paid with cash)
250,000
Factory overhead
Indirect materials
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Group of answer choices
12%
6%
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8%
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