One Year U

question 6

Multiple Choice

One year U.S.interest rates are 5% and European interest rates are 7%.The spot euro direct exchange rate quote is 1.32 and the one year forward rate direct quote is 1.35.If you have $1 million dollars or € 1 million to start with what would be your dollar profits from an interest arbitrage based on this data?

• A) $94,322
• B) $55,345
• C) $44,318
• D) $33,595

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Definitions:

Imferon

A brand name for iron dextran, which is used to treat iron deficiencies and iron deficiency anemia by replenishing body iron stores.

Z-track

A technique used in intramuscular injection to prevent medication leakage and minimize tissue irritation by displacing skin and tissue layers.

Irritation

A condition of inflamed or painful reaction of the skin, eyes, mucous membranes, or gastrointestinal tract.

Medication Administration

The process of providing pharmaceutical compounds to achieve a therapeutic effect, typically involving ensuring correct dosage, timing, and method of delivery.