Consider the following information available in Diamond Bank located in a neighborhood near you.

         Spot Rate for the British Pound Sterling                                                                 $1.60

         90 – day forward rate of the pound                                                                         $1.59

         90 – day UK interest rate                                                                                               4%

         90 – day U.S. interest rate                                                                                             3%

(a)Given this information, would it be a prudent strategy for Diamond Bank to engage in covered interest arbitrage? Explain.

(b)If covered interest arbitrage is profitable how much profit would the Bank earn if it uses $1,000,000?

(c)Briefly discuss the realignment process that will yield interest rate parity.

Phil Nelson, 19 year old, was brought to the ER following a near-drowning. He was not breathing when the paramedics pulled him out of the lake. CPR was given and he awoke. Upon arrival to the ER, he was extremely anxious with a BP of 118/62 and respiratory rate of 26. He was alert and oriented X 3 and the nurse auscultated crackles along with expiratory wheezing throughout all lung fields. A 40% face mask was applied and his ABGs were:

pH 7.48          PaCO₂   28      PaO₂ 48          O₂sat 90%      HCO₃   24. All other labs were normal.

Interpretation of this ABG __________________________________________________

Phil remained stable for the next 24 hours but became dyspneic, tachypneic, tachycardic and developed progressive hypoxemia. Despite the ICU nurse increasing the FIO₂, his ABGs continued to deteriorate. On 100% nonrebreather mask, his ABGs were:

pH 7.50          PaCO₂   28      PaO₂ 48          O₂sat 77%      HCO₃   24

Interpretation of this ABG __________________________________________________

He was intubated and ventilated with the following settings:            AC 12, FIO₂ 60%, TV 800ml, and PEEP of 5. Post intubation X-ray showing proper ET placement but bilateral diffuse, patchy infiltrates were noted. A pulmonary artery catheter was inserted and the following readings were obtained:

PA 25/10                   pH 7.48

PAWP 8                     PCO₂ 30

CVP 6                        PaO₂ 58

CO 7.5                        O₂ sat 89%

                                    HCO₃ 24

Interpretation of this ABG __________________________________________________

Phil Nelson was diagnosed with ARDS.

1.     What is ARDS? What is the diagnostic criterion for ARDS?

2.     What clinical conditions are commonly associated with ARDS?

3.     What are the major pathophysiologic alterations in ARDS?

4.     What are the clinical signs and symptoms of ARDS?

5.     What is the usual cause of hypoxemia in ARDS?

6.     What is the treatment for an intrapulmonary shunt?

7.     How can PEEP affect O₂ transport?

Phil Nelson’s ABGs were not improving as expected. The physician ordered a PEEP of 10. Thirty minutes later another set of ABGs were drawn but the PaCO₂ remained 32 and the PaO₂ only increased to 65. The physician increased the PEEP to 15 and the PaO₂ increased to 88 and the O₂ sat increased to 95%. However, the nurse performed a cardiac output which was reported as 3.8. Why?

8.     The physician was hesitant to increase the FIO₂ further than 60%. What was the physician concerned about?

9.     Phil was restless and the nurse notes that he is “bucking” the vent. Why is this a concern? What should the nurse assess for?

Despite the typical medical/nursing interventions, the client has not improved, and the physician orders a neuromuscular blockade. What is this therapy and why is it used?

10. What are the most essential nursing responsibilities when caring for a mechanically ventilated client receiving neuromuscular blockade?

11. Morphine was prescribed to Phil’s drug regimen. Why? What other medications do you anticipate the physician ordering for a patient who is on neuromuscular blockade?

12. Phil’s BP drops to 90/58 and his CVP to 2, and his PAWP to 4. Urine output is less than 30ml/hr. What therapy do you anticipate?

13. Phil is started on enteral feedings. Why is nutrition important in the patient with ARDS?

14. What is the leading cause of death in patients with ARDS?

15. Identify and prioritize three of the most important nursing diagnoses that are appropriate in caring for Phil.

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.80 per car washed.

The actual operating results for August appear below.

Required:

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.80 per car washed.

The actual operating results for August appear below.

Required:

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

It is​ April, and Hans Anderson is planting his barley crop near​ Plunkett, Saskatchewan. He is concerned about losing his farm if his operations result in a loss at the end of the season. He expects to harvest 3 comma 000 tonnes of barley and sell it in October. Futures contracts are available for October delivery with a futures price of $ 200 per tonne. Options with strike price of $ 200 per tonne are also​ available; puts cost $ 16 and calls cost $ 20. a. Describe how Hans can fully hedge using futures contracts. b. Given the strategy in ​(a​), what will be the total net amount received by Hans​ (for all 3 comma 000 ​tonnes) if the price of barley in October is as​ follows: i . $ 150 per​ tonne; ii. $ 200 per​ tonne; iii. $ 250 per tonne c. Describe how Hans can fully hedge using options. d. Given the strategy in ​(c​), what will be the total net amount received by Hans​ (for all​ 3,000 tonnes) if the price of barley in October is as​ follows: i. $ 150 per​ tonne; ii. $ 200 per​ tonne; iii. $ 250 per tonne e. Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice. i. Hans does not expect to have much cash available between May and September. ii. Hans thinks there is a 25​% chance his crop will be destroyed by hail before he has a chance to harvest it. iii.​ Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $ 570 comma 000. If his business goes​ bankrupt, Hans's bank will foreclose and take his house and farm. iv.​ Hans's farming business will go bankrupt if his net revenues in October do not cover his costs. He estimates his costs will be $ 800 comma 000. If his business goes​ bankrupt, Hans's bank will foreclose and take his house and farm.

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,100 per month plus $0.07 per car washed. The company expected to wash 8,100 cars in August and to collect an average of $6.70 per car washed.

The actual operating results for August appear below.

Required:

Compute the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,000 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 per car washed.

The actual operating results for August appear below.

Required:

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Roadrunner Co. is building a waste landfill in the desert near Phoenix, AZ. Roadrunner estimates that this landfill will be in operation for 4 years, will cost $175,000,000 to build, and will generate $600 million in revenues during its useful life. Federal law requires that Roadrunner decommission and decontaminate the site at the end of its useful life. A team of engineers has studied the decontamination procedure and has estimated that Roadrunner will have to spend $20,000,000 on the decommissioning process when the landfill is shut down four years from now. Roadrunner's credit-adjusted risk-free rate of interest is 10%; the PV factor for 4 periods at 10% equals 0.683013.

Required:

• In accordance with U.S. GAAP, how should Roadrunner Co. account for the costs associated with the decommissioning process? Prepare the journal entry required and prepare an amortization table for the asset retirement obligation.

• How are the costs associated with the decommissioning process reflected on the income statement? Explain how this accounting treatment improves the matching process.

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company’s expected costs:

For example, electricity costs are $1,950 per month plus $0.20 per car washed. The company expects to wash 8,500 cars in October and to collect an average of $6.40 per car washed.

Auto Lavage’s actual level of activity was 8,600 cars. The actual revenues and expenses for October are given below:

Required:
1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,500 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)