Consider the Following Assume the Current Market Futures Price Is 1

question 55

Multiple Choice

Consider the following: $\begin{array}{lc} \text { Risk-free rate in the United States } & \text { 0.04 / year } \\ \text { Risk-free rate in Australia } & \text { 0.03 / year} \\ \text { Spot exchange rate } &1.67A\$/\$\\\end{array}$

Assume the current market futures price is 1.66 A$/$. You borrow 167,000 A$, convert the proceeds to U.S. dollars, and invest them in the U.S. at the risk-free rate. You simultaneously enter a contract to purchase 170,340 A$ at the current futures price (maturity of 1 year) . What would be your profit (loss) ?

• A) Profit of 630 A$
• B) Loss of 2300 A$
• C) Profit of 2300 A$
• D) Loss of 630 A$

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Definitions:

Strong Organizational Cultures

A situation in which an organization's values and norms are deeply embedded and widely shared among its members, leading to consistent behaviors and high levels of motivation.

Goal Alignment

The process of ensuring that individual, team, or organizational objectives are coherent and support each other.

Bureaucracy

A formal organization structure that is characterized by a hierarchical arrangement of jobs, strict regulations, and detailed procedures intended to manage complex operations efficiently.

Organizational Identity

The shared understanding among members about what distinguishes the organization from others, encompassing its values, beliefs, and principles.