The US Dollar Spot Exchange Rate with the Australian Dollar Is

question 62

Multiple Choice

The U.S. dollar spot exchange rate with the Australian dollar is $1 = AU$1.2219. The U.S. dollar and euro exchange rate is $1 = €0.7595. If the cross-rate between the euro and Australian dollar is €1 = AU$1.575 then show that an arbitrage is possible. What positions should be taken to profit from the mispricing?

• A) Starting with U.S. dollars, buy Australian dollars and convert them to euros, then convert back to U.S. dollars.
• B) Starting with U.S. dollars, buy euros and convert them to Australian dollars, then convert back to U.S. dollars.
• C) Starting with euros, buy U.S. dollars and convert them to Australian dollars, then convert back to euros.
• D) Starting with Australian dollars, buy euros and convert them to U.S. dollars, then convert back to Australian dollars.

Understand the importance of incorporating spiritual care into nursing practice.

Evaluate the impact of spirituality on patient health and well-being.

Demonstrate effective communication skills when discussing spirituality with patients.

Recognize and address barriers to providing spiritual care in nursing.

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Definitions:

Drawings

Withdrawals of cash or other assets from a privately-owned business by the owner(s) for personal use.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Debts And Obligations

Financial commitments or responsibilities, such as loans and promissory notes, that an entity is required to pay to others.

Future Economic Benefits

The capability to assist in the direct or indirect increase of cash and cash equivalents for an organization.