Suppose the Spot Rate and Forward Rate for the British

question 5

Multiple Choice

Suppose the spot rate and forward rate for the British pound are $1.4248 and $1.4179 respectively.Assume the forward pound is selling at a 1.94% annualized discount,what is the number of days of the forward contract?

• A)180 days
• B)120 days
• C)90 days
• D)60 days

Determine the time required for a business investment to repay its initial cost including a desired return.

Calculate nominal and effective rates of interest for ordinary annuities.

Assess the effective rate of interest on consumer financing options, considering promotional offers and compound interest.

Understand and calculate future values of investments with periodic contributions.

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Definitions:

Segment Specialization

A marketing strategy where a company focuses its efforts on a specific segment of the market, catering to its unique needs and preferences.

Sugar-Free Diet

A nutritional approach that excludes or significantly reduces the consumption of added sugars to improve health outcomes and potentially manage conditions like diabetes.

Diabetics

Individuals who have diabetes, a chronic health condition that affects how the body processes blood sugar (glucose).

Product Specialization

The strategy of focusing production and marketing efforts on a particular line of products, allowing companies to hone their expertise and cater to specific customer needs.