Examlex
Consider the fib method from the textbook shown below: public static long fib(int n)
{
If (n <= 2)
{
Return 1; // line #1
}
Else
{
Return fib(n - 1) + fib(n - 2) ; // line #2
}
}
Assume line #2 is changed to this:
Else { return 2 * fib(n - 1) + 2 * fib(n - 2) ; }
What effect will this change have?
Absolute Purchasing Power Parity
The theory that, in the absence of transaction costs and other barriers, identical goods in different countries should have the same price when expressed in a common currency.
Transaction Costs
The expenses incurred when buying or selling goods and services, which may include commissions, fees, and the bid-ask spread.
Covered Interest Arbitrage
An investment strategy that involves exchanging domestic currency for a foreign currency, investing in foreign interest-bearing assets, and using forward contracts to hedge exchange rate risk.
Forward Contract
A special arrangement made between two parties to transact an asset at a pre-agreed price on a set date in the future.
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