Will an Arbitrageur Facing the Following Prices Be Able to Make

question 73

Multiple Choice

Will an arbitrageur facing the following prices be able to make money?

• A)Yes, borrow €1,000,000 at 3.65%; Trade for $ at the bid spot rate $1.40 = €1.00; Invest at 4.1%; Hedge this with a long position in a forward contract.
• B)Yes, borrow $1,000,000 at 4.2%; Trade for € at the spot ask exchange rate $1.43 = €1.00; Invest €699,300.70 at 3.5%; Hedge this by going SHORT in forward (agree to sell € @ BID price of $1.44/€ in one year).Cash flow in 1 year $237.76.
• C)No; the transactions costs are too high.
• D)None of the above

Identify cultural practices and their roles in socialization and identity formation.

Differentiate between views on culture in terms of assimilation and integration.

Comprehend the role of primary emotions and the brain structures involved.

Describe the concept of "worldview defense" within terror management theory.

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Definitions:

Human Rights Commission

A national or international organized body that investigates, protects, and advocates for the rights of human beings.

Quiet Place

A location or setting characterized by minimal noise, often sought for relaxation, concentration, or meditation.

Colleagues

Individuals whom one works with, especially within professional or formal environments, sharing mutual interests or goals.

Religious Group

A community of individuals who share the same religious beliefs, practices, or identity.