Assume the Following Information

question 33

Multiple Choice

Assume the following information:
You have $300,000 to invest
The spot bid rate for the euro (€) is $1.08
The spot ask quote for the euro is $1.10
The 180-day forward rate (bid) of the euro is $1.08
The 180-day forward rate (ask) of the euro is $1.10
The 180-day interest rate in the U.S.is 6%
The 180-day interest rate in Europe is 8%
If you conduct covered interest arbitrage,what amount will you have after 180 days

• A) $318,109.10.
• B) $330,000.00.
• C) $312,218.20.
• D) $323,888.90.
• E) none of the above

Understand the concept of transfer pricing and its range for transfers within a company.

Calculate residual income and understand its implications for investment decisions.

Assess the return on investment (ROI) for new investment opportunities and their impact on overall company performance.

Analyze financial data to compute margin, turnover, and ROI for performance evaluation.