Refer to the Figure Showing the Honey Bee Waggle Dance

question 137

Short Answer

Refer to the figure showing the honey bee waggle dance. The bee performing the waggle dance in part B of the figure is communicating what to her hivemates?

---

Definitions:

Bond

A fixed income instrument that represents a loan made by an investor to a borrower, usually corporations or governmental agencies, which includes the terms of the loan, interest payments, and the time at which the loaned funds must be repaid.

Interest Rate Parity

An economic theory stating that the difference in interest rates between two countries is equal to the expected change in exchange rates between their currencies.

Unbiased Forward Rates

Financial theory suggesting that forward exchange rates should be an unbiased predictor of future spot exchange rates.

Covered Interest Arbitrage

An investment strategy that involves exploiting the interest rate differential between two countries while using forward contracts to hedge against currency risk.