User Account

All Pages

Foreign exchange transactions

Assignment Help Finance Basics
Reference no: EM132494328

Three Exchange Rates are as follows:

1) US Dollars (USD) to Canadian Dollars (CAD) at CAD 1 to USD 1.05

2) CAD to Euros (EUR) at CAD 1.38 to EUR 1

3) EUR to USD at EUR 0.72 to USD 1

Suppose you start with USD 100,000, and do one round of "triangular arbitrage", that is make a total of 3 foreign exchange transactions, starting from USD and returning to USD. What will be your profit in USD?

(Note: Profit will be Final USD amount - $100,000. There are not transaction costs.)

Your Answer:

Reference no: EM132494328

Questions Cloud

Prepare the financing section of the statement of cash flows : Prepare the financing section of the statement of cash flows. Hagag Company uses the indirect method to prepare its statement of cash flows.
What amount would their IRA deduction be for the year : Jill contributed $3,500 to her traditional account and $2,000 to her IRA account. What amount would their IRA deduction be for the year
Calculate the payback and discounted payback period : 1. Compute the NPV for both projects. 2. Calculate the payback and discounted payback period for both projects.
Could she have a legal case on the basis of the americans : David Perkins left a successful career in the NFL after two head injuries. His doctors recommended for his safety, that he leave the sport if he wanted to live.
Foreign exchange transactions : Suppose you start with USD 100,000, and do one round of "triangular arbitrage", that is make a total of 3 foreign exchange transactions, starting from USD
Calculate diluted EPS : Common shares, issued in prior years (800,000 outstanding) $8,000,000. Calculate diluted EPS for 2017. Include all calculations including anti-dilutive tests
Calculate total percent return : The long-term capital gain per share is $4.60 and the dividend per share is $2.10. Assuming the NAV increased from $39.10 to $46.21, calculate your total percen
Explain to joan whalen why a set of financial statements : Explain to Joan Whalen why a set of financial statements would be useful to you in evaluating the loan request
Importance of the time value of money in finance : What are the importance of the time value of money in finance.

Reviews

Write a Review

Finance Basics Questions & Answers

  A project returns -5 if the stock market returns -10 and 5

a project returns -5 if the stock market returns -10 and 5 if the stock market returns 10. what is the market beta of

  State the effect of cash and profit

The following is a list of business/accounting events. In each case, state the effect (increase, decrease or no effect) on both cash and profit.

  Dollar return and percent return last year

Two years ago, Conglomco stock ended at $73.02 per share. Last year, the stock paid $0.34 per shared dividend. Conglomco stock ended last year at $77.24. If you owned 200 shares of Conglomco stock, what were your dollar return and percent return l..

  Calculating dollar cost of jpy loan

ABC Inc. borrows 100m JPY when JPY spot rate is JPY120/$. The JPY interest rate for the loan is 3%. One year later when ABC pays back the JPY principal and interest, the exchange rate is JPY 95/$. What is the dollar cost of ABC's JPY loan?

  Debate on shareholder primacy versus stakeholder primacy

Shareholder Primacy versus Stakeholder Primacy because pursuing Corporate Shared Value achieves both objectives simultaneously or is the debate still not resolved?

  Use the profitability index (pi) decision rule to evaluate

Use the Profitability Index (PI) decision rule to evaluate

  Describe the concept of value addition in operations

Using the value chain analysis of Michael porter, describe the concept of value addition in operations management.

  How can you make a riskless profit

Call options with strikes 100, 120, and 130 on the same underlying asset and with the same maturity are trading for 8, 5, and 3, respectively.

  Castles in the sand issued bonds at face value at a yielf

castles in the sand issued bonds at face value at a yielf to maturity of 7. now with 8 years left until the maturity of

  Dividend policies of three dividend-paying utilities

You are comparing the dividend policies of three dividend-paying utilities. You have collected the following information on the ex-dividend behavior of these fi

  Set up the amortization schedule for a five-year 1 million

set up the amortization schedule for a five-year 1 million 9 percent loan that requires equal annual end-of-year

  Acatel-lucent reports all amounts in millions of

balance sheet relations. the balance sheet of alcatel-lucent a french communications firm for the year ended december

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd