8Farida Recently Moved from a Very Small Town to a Large

question 41

Essay

8.Farida recently moved from a very small town to a large city to pursue a college education. In high school she did not have a boyfriend, even though she would have liked to have been in a relationship. She did not get asked to go on dates because she was not considered one of the ÒpopularÓ students. In one of her college courses, Farida met Sayid, who asked her out for coffee a few times and seems interested in pursuing a relationship with her. Farida wonders, however, whether Sayid is truly interested in dating her, or whether he only wants to spend time with her because she is doing well in their college class. Because no other men have expressed interest, Farida decides to pursue a relationship with Sayid. Interpret Farida's situation from a social exchange theory perspective.

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Definitions:

Forward Exchange Rate

A contractually fixed exchange rate for the future exchange of currencies at a specified date, used to hedge against foreign exchange risk.

Arbitrage

The simultaneous purchase and sale of the same assets in different markets to exploit price differences for a profit.

Risk-free Rate

The expected yield from an investment that carries no risk of losing money, often identified by the returns on government bonds.

Futures Market

A financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future.