A Foreign currency trader at the bank’s FX desk calls to inform you that Bank of America is quoting $1.12/€1, and Citibank is offering $1.28/£1. The trader also noticed that Credit Agricole is making market in pound sterling and Euro at €1.18/£1.

a. What is the implied €/£ cross-rate for the two European currencies? Show this trader how you would use $1 million to conduct a triangular arbitrage to profit from the deviation (if any) of the implied cross rate of the €/£, from the rate quoted by Credit Agricole.

b. Suppose you observed that the 3-month forward rate quote from Bank of America is $1.21/€1, calculate the forward premium (discount) implied by the quote.

c. What do investors expect to happen to the value dollar in the next three months?

“The currency crisis in Turkey is being exacerbated by a skyrocketing annual inflation rate, which by some estimates, exceeds 100 percent. Countries with high inflation rates relative to others tend to see their currencies depreciate. Over three weeks time, the Turkish lira has plummeted, with selling intensifying into Monday's record low of 7.24 lira per dollar after President Donald Trump on Friday said he would increase tariffs on steel and aluminum originating from Turkey. The escalating tariffs were a direct attack on Turkey's refusal to free jailed American pastor Andrew Brunson. (CNBC, August 14, 2018)”

“Since Turkey suffered an economic crisis of confidence in August – with its currency falling by some 25% that month – emerging markets around the world, from South Africa to Indonesia, have also experienced plummeting currencies and an outflow of foreign investment. Argentina, which had stabilized after a crisis earlier in the year, has fallen back into emergency mode, increasing interest rates to 60%. Its currency, the peso, has fallen by 45% in 2018 and 24% in August”. (World Economic Forum September 04, 2018) (500 Words)

a. The Turkish Lira fell over 60% against the US dollar since Erdogan became president of Turkey in 2014. Explain how such currency depreciation could lead to stagflation in Turkey. Explain clearly why a country’s currency depreciates when the country faces high relative inflation rates.

b. One of the main reasons of this capital outflow from countries like Turkey is the fact that the Fed has been increasing the US Interest rate, up to almost 3%. Explain why a higher American interest rate causes an outflow of capital in other countries?

c. The Federal Reserve has raised the interest rates already 3 times in 2019, and is expected to raise the federal funds rate by another 25 basis points at the end of the year. For what reason is the US President Donald Trump not happy with these rate hikes? Make sure you do thorough research and explain your answer properly.

3-19 Jaime’s Hat Shop sells hats with college logos on them; the hats sell for $22 each. This year, Jaime’s expects to sell 350 hats in May, 300 in June, 400 in July, 800 in August, 1,040 in September, and 750 in October. On average, 25 percent of its customers purchase on credit. Jaime’s allows those customers to pay for their purchases the month after they have made their purchases. Required: Prepare a sales budget for Jaime’s Hat Shop for the third quarter of this year.

I'VE ALREADY DONE THIS, JUST NEED HELP WITH THE QUESTION BELOW, THE QUESTION ABOVE (3-19) IS JUST FOR REFERENCE

Refer to 3-19. Jaime’s Hat Shop expects to incur the following expenses for each month of the third quarter of this year:

Rent (30% general and administrative, 70% selling) 1,200

Utilities (30% general and administrative, 70% selling) 600

Advertising 400

Salaries (50% general and administrative, 50% selling) 5,000

Commissions (for each hat sold) 2

In January, Jaime’s had prepaid the rent for the whole year. Jaime plans to pay for all the other expenses in the month they occur.

Required:

(1) Prepare a selling expenses budget for the third quarter of this year.

(2) Prepare a general and administrative expenses budget for the third quarter of this year.

Read the following excerpt and answer question 3. Money down the drain Households hit by sky high power bills have also been silently battling surging water and sewage costs in a double – whammy on their budgets A Herald Sun analysis of 10 years of bureau of Statistics data has found that water and sewerage charges jumped an average 91 per cent since 2007, not far behind electricity’s jump 116 per cent jump. …… Water economics specialist and Australian National University professor Quentin Grafton said the costs to “drought-proof” cities [by building higher cost desalination plants] had been passed on to customers over the past decade, and authorities had started charging households more for water use above certain thresholds. … Author Anthony Keane Source: The Herald Sun October 21st, 2017 3. Using the cost diagrams, including drawing a graph, explain, what is happening to costs of the firm. Identify any relevant information provided in the article. What solution would you recommend to the government to address any equity concerns where poorer households experiencing high water prices (noting that clean water is an important commodity)? Explain your solution carefully. Word count 350.

On December 31, 2020, Berclair Inc. had 400 million shares of common stock and 7 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 60 million shares of its common stock as treasury stock. Berclair issued a 4% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $350 million.

Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $35 per share. During 2021, the market price of the common shares averaged $70 per share.

The options were exercised on September 1, 2021.

Required:

Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.)

According to a national poll, 41% of American workers said that they were completely
satisfied with their job. Find the probability that in a random sample of 1140 American workers, the
proportion of workers who are completely satisfied with their current job is between 0.4 and 0.44.

What cultural differences between the Islamic community and the average American community do you think are contributing to the rise of Islamophobia. Why? What special considerations would you need to take when counseling an Arab American. Why?

How did the American West change the landscape and lives for many Americans? What impact did American policy have on the lives of Native Americans? (Please provide examples) How did the railroad industry impact Western life?

American resistance to British imperial legislation became forceful and violent during the Imperial Crisis. Describe the Stamp Act crisis and Boston Massacre. Which event proved more significant and why in fueling the emerging American resistance movement?