A speculator is considering the purchase of one three-month put option on USD with a strike price of 97 yen per U.S. dollar. The premium is 0.24 yen per U.S. dollar. The current spot price is 107.81 yen per U.S. dollar and the 90-day forward rate is 71.46 yen/USD. The speculator believes the USD will depreciate to $1.00 versus 93 yen over the next three months. As the speculator’s assistant, you have been asked to prepare the followings: 1. Graph the profit/loss diagram of the put option in an Excel spreadsheet. 2. Determine the speculator’s profit if the USD depreciates to 93 yen/USD. 3. Determine the speculator’s profit/loss if the USD depreciates to the forward rate. 4. Determine the future spot price at which the speculator will only break even.
In: Finance
Suppose the nomianal interest rate for 1-year borrowing and lending in the U.S (i$) is currently 5%,while the nominal interest rate on 1 -year borrowing and leading in the U.K (1£) is 3%. Suppose,too, that nominal British pound/U.s. dollar exchange rate is to be £1.60/$ next year (i.e-1(£/$)e= £1.60/$).
A.According to the theory of Interest Rate Parity, what is the current equilibrium nominal exchange rate between the pound and the dollar (E0(£/$))?
B. All else equal, if the U.S. interest rate increased to 8%, what would be the new equilibrium
exchange rate?
C.All else equal (i.e. with both i$and E eat their initial levels), if the U.K. interest rate increased to 8%, what would the new equilibrium exchange rate be?
In: Economics
1) A slowdown in the U.S economic growth will
A) boost $ value because inflation fears will be calmed. B) boost $ value because the federal reserve will expand money supply. C) lower $ value because the U.S will be a less attractive place to invest in. D) lower $ value because intrest rate will rise
2) In 1995 ¥ went from $0.0125 to $0.0095238. By how much did $ appreciate against ¥?
3) Suppose that the Brazilian real devalues by 40% against the dollar. By how much will the dollar appreciate against the real?
4) Suppose the spot direct quotes for the pound sterling in New York is $1.3981. What is the direct quote for the dollar in London?
5) If the Euro devalued by 17% against the U.S dollar, this is equivalent to revaluation of the dollar against Euro by?
In: Finance
| Given | Principal $13,500, Interest Rate 9%, Time 240 days (use ordinary interest) | |
| Partial payments: | On 100th day, $3,800 | |
| On 180th day, $2,500 | ||
a. Use the U.S. Rule to solve for total interest
cost. (Use 360 days a year. Do not round intermediate
calculations. Round your answer to the nearest
cent.)
Total interest cost
$
b. Use the U.S. Rule to solve for balances. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.)
| On 100th day | On 180th day | |
| Balance after the payment | $ | $ |
c. Use the U.S. Rule to solve for final payment.
(Use 360 days a year. Do not round intermediate
calculations. Round your answer to the nearest
cent.)
Final payment
$
In: Finance
This needs to be a python3 code
Write a program that prompts the user like this: “Currency to
convert to U.S. dollars: e = Euros, c= Chinese Yuan, r = Indian
Rupees, b = Bitcoin: ”. Then depending on which letter the user
enters, the program displays “Amount of Euros/Yuan/Rupees/Bitcoin
to convert: ”. (Note: the second prompt should only name the one
currency the user asked to convert, not all four currencies.) After
the user enters the amount, the program displays “In U.S. dollars,
that is $N”, (N is the amount converted to U.S. dollars).
Conversion rates (from Google, Aug 25, 2019):
• 1 Euro = 1.11 US dollar • 1 Chinese yuan = 0.14 US dollar • 1
Indian rupee = 0.014 US dollar • 1 Bitcoin = 10283.00 US dollar
In: Computer Science
The U.S. MNC has translated the balance sheet and income statement of a French subsidiary, which keeps its books in euro, then is translated into U.S. dollars using the current/noncurrent method—the reporting currency of the U.S. MNC. The subsidiary is at the end of its first year of operation. The historical exchange rate is $1.60/€1.00 and the most recent exchange rate is $1.50/€. The foreign currency gain or loss for this U.S. MNC is
|
Local Currency |
Current/Non current |
|
|
Balance Sheet |
||
|
Cash |
€2,100 |
$3,150 |
|
Inventory (current Value = €1,800) |
€1,500 |
$2,250 |
|
Net fixed assets |
€3,000 |
$4,800 |
|
Total Assets |
€6,600 |
$10,200 |
|
Current liabilities |
€1,200 |
$1,800 |
|
Long-term |
€1,800 |
$2,880 |
|
Common stock |
€2,700 |
$4,320 |
|
Retained earnings |
€900 |
|
|
CTA |
||
|
Total L&E |
€6,600 |
$10,200 |
|
Income Statement |
||
|
Sales Revenue |
€10,000 |
$15,484 |
|
COGS |
€7,500 |
$11,613 |
|
Depreciation |
€1,000 |
$1,600 |
|
NOI |
€1,500 |
$2,271 |
|
Tax(40%) |
€600 |
$908 |
|
Profit after tax |
€900 |
$1,363 |
|
Foreign Exchange gain (loss) |
||
|
Net income |
€900 |
|
|
Dividends |
0 |
0 |
|
Addition to Retained Earnings |
€900 |
In: Finance
Germany experiences an increase in foreign direct investment (capital outflow) when a German hotel chain opens a new hotel in France.
Select one:
True
False
Net capital outflow refers to the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreign residents, and, as a result, the U.S. experiences an increase in foreign portfolio investment (capital outflow) when a U.S. resident buys stock in companies located in Japan.
Select one:
True
False
The increase in international trade in the United States is partly due to increased trade of goods with a high value per pound.
Select one:
True
False
A country has $200 million of net exports and $750 million of saving. Therefore, net capital outflow is $200 million and domestic investment is $950 million
Select one:
True
False
Suppose that a pound of copper costs $3 in the United States and costs 40 pesos in Mexico. If 10 Mexican pesos trade for one U.S dollar. then the real exchange rate is 3/4 pounds of Mexican copper per pound of U.S. copper.
Select one:
True
False
In: Economics
Medical researchers conducted a national random sample of the body mass index (BMI) of 654 women aged 20 to 29 in the U.S. The distribution of BMI is known to be right skewed. In this sample the mean BMI is 26.8 with a standard deviation of 7.42. Are researchers able to conclude that the mean BMI in the U.S. is less than 27?
Conduct a hypothesis test at the 5% level of significance using StatCrunch (directions) or calculating T and using the T-Distribution Calculator above.
Based on your hypothesis test, what can we conclude?
Group of answer choices
a) With a mean BMI of 26.8, the data supports the claim that the average BMI is less than 27, but the difference is not statistically significant. We fail to reject the null hypothesis that the mean BMI for women aged 20 to 29 in U.S. is 27.
b) With a mean BMI of 26.8, the data supports the claim that the average BMI is less than 27. We reject the null hypothesis that the mean BMI for women aged 20 to 29 in U.S. is 27.
c) Nothing. The distribution of the variable in the population is right skewed, so the conditions for use of a t-model are not met. We cannot trust that the p-value is accurate for this reason.
In: Statistics and Probability
In 2016, United Kingdom voted to leave the European Union. On Marsh 29, 2019 the Brexit AKA secession from the Union is schedule to take place. The referendum results and the approaching date of the secession have negatively affected business environment in the UK leading to a growth rate slowdown in the Kingdom. Explain how the Brexit ( and the expectation of the Brexit) affect the U.S. economy. Using all the ISLM and ADAS diagrams illustrate the effect of the Brexit on the U.S. economy. Label all curves and axes. Write formulas for each of the curves what could the U.S. Central Bank do to stabilize the economy Illustrate its actions on ISLM and ADAS diagram. List all monetary policy tools (but do not explain how they work). Suppose the Central Bank does not take any actions. What could the U.S government do to stabilize the economy? Illustrate its actions on the ISLM and ADAS graphs (I Suggest drawing a new set of diagrams rather than using ones form (2)).
What happens to the interest rate monetary policy actions? What happens to the interest rate after fiscal policy actions? Explain the intuition for your result
In: Economics
in which instance does the taxpayer NOT have a
dependent?
(1) Marcus is single. Quinta is Marcus's qualifying relative.
Marcus may be claimed by his mother, but she is not going to claim
him. Quinta is not married. Both Marcus and Quinta are U.S.
citizens.
(2) Carol and Carrie are married. Carol is their qualifying child.
No one can claim Carl or Carrie on their tax return. Carol married
to Paul. Neither Carol or Paul is required to file a tax return.
Carol has no income. Paul is filing a joint return with Carol only
to claim a refund on taxes withheld. Carl, Carrie, and Paul are all
U.S. citizens.
(3) Mai is single. Lee is her qualifying child. No one can claim
Mai on their tax return. Lee is married to Sonja. Neither Lee nor
Sonja is required to file a tax return. Lee had no Income. Lee and
Sonja will not be filing a joint return. Mai, Lee, and Sonja are
all U.S
citizens.
(4) Tomas is single. Lucinda is Tomas's qualifying child. No one
can claim Tomas on their tax return. Lucinda is not married. Tomas
is a U.S citizen. Lucinda is a resident of Mexico.
In: Accounting