Bank is quoting suppose the market condition

Assignment Help Financial Management

Reference no: EM132014784

1. A bank is quoting suppose the market condition is summarised as follows:

3 Months interest rates in US = 8%p.a

3 Months interest rate in Germany =5%p.a

Current spot rate Euros 0.80/$

3 months forward exchange rate Euros 0.7994/$

Required

Execute a CIA scheme, assuming an arbitrageur can borrow $ 1 Million or the equivalent of Euros 800,000

2. You are considering a project in India which has an initial cost of 1,050,000RS. The project is expected to return a one-time payment of 1,970,000RS five years from now. The risk-free rate of return is 2 percent in the U.S. and 4.5 percent in India. The inflation rate is 1.7 percent in the U.S. and 4 percent in India. Currently, you can buy 5,200RS for $100. How much will the payment five years from now be worth in U.S. dollars?

$27,380

$29,006

$31,579

$33,484

$35,412

Reference no: EM132014784

Questions Cloud

The three segments you chose and why each appealed to you : Insights related to dispositions you will need to work on as you seek to be more effective in your work as an early childhood professional.

The social problem or issue that you are working on : You will work on the wiki portion of your Final Research Project. You can organize your wiki in any manner that you choose.

Identify the current issue that the business is facing : Identify the current issue that the business is facing and propose an HRIS solution. Introduce the HR function that you chose as the focus of your business.

How is being saved in the religious sense differen : How is being "saved" in the religious sense different than what he, as a child confused in the middle of a revival, experiences in front of the community.

Bank is quoting suppose the market condition : A bank is quoting suppose the market condition is summarised as follows:

How you would present this information to senior managers : At this time, senior management is reluctant and uninformed as to how they should promote the millennials as leaders. This first step is to create a plan.

How far away is horizon date : How far away is the horizon date? What is the firm's horizon, or continuing, value?

Develop the characteristics of various leadership theories : A matrix is a grid that contains information and offers a visual model of ideas. For this assignment, you will create a matrix that explains leadership theories

Asiprin synthesis lab : In your asiprin synthesis lab you used 4.52 g of SA and 21.8 mL of AcA.

User Account

All Pages