What is carry trade profit at t in aud

Assignment Help Accounting Basics
Reference no: EM132476606

Problem 1: The one-year interest rates for the USD and the AUD are: USD = 6% and AUD=4%. Assume USD/AUD = 0.73. Say you borrow 120,000 units of a currency at t=0 and that the spot rate does not change between t=0 and t=1, so USD/AUD = 0.73. What is your carry trade profit at t=1 in AUD?

Reference no: EM132476606

Questions Cloud

Determine by how many percent against nzd : Assume that the NZD is undervalued by 24.62% against the USD. Then the USD is overvalued Determine by how many % against NZD?
Problem - Calculation of EPS : Calculation of EPS. The options were exercised on September 1, 2021. Compute Berclair's basic and diluted earnings per share for year ended December
How many percent USD overvalued according to UIRP condition : Assume that the one year interest rates for USD and CHF are USD, By how many % is the USD overvalued/undervalued according to UIRP condition?
Problem - Capitalization of Interest : Compute the depreciation expense for the year ended December 31, 2020. McPherson elected to depreciate the building on a straight-line basis
What is carry trade profit at t in aud : Currency at t=0 and that the spot rate does not change between t=0 and t=1, so USD/AUD = 0.73. What is carry trade profit at t=1 in AUD?
Draw a diagram showing the market for generators : Draw a diagram showing the market for generators with an equilibrium price at $250. Now impose a price ceiling at $200 per generator.
How many percent USD overvalued against the EUR : Currently the spot rate is XUSD/EUR =1.18. According to APPP, by how many percent is the USD overvalued/undervalued against the EUR?
Effects of the strong increase in australian exports : Discuss the effects of the strong increase in Australian exports, leading to a strong increase in GDP on the equilibrium wage and employment level of an economy
Describe the expected impact : Common stock: 100,000 shares outstanding, Describe the expected impact, if any, that the 2-for-1 stock split will have on the number of shares outstanding

Reviews

Write a Review

Accounting Basics Questions & Answers

  What information does your calculation provide an investor

Calculate the return on shareholders' equity for AGF. The average return for the stocks listed on the New York Stock Exchange in a comparable period was 18.8%. What information does your calculation provide an investor?

  Cash and securities comprising a sinking fund

The cash and securities comprising a sinking fund established to redeem bonds at maturity in 2015 should be classified on the balance sheet as:

  Discuss what is the likelihood that companies will reassess

what is the likelihood that companies will reassess this using this strategy

  Global computer corporation manufactures its laptops in

global computer corporation manufactures its laptops in asia and sells laptops internationally. the company produces a

  Common stock and transaction

On April 18, 2010 Jim sold 300 shares of Redwood Corporation common stock for $8400. Jim acquired the stock in 2006 at a cost of $10000. On May 9, 2010 he repurchased 150 shares of Redwood corporation common stock for $3600 and held them until Aug..

  Calculate the net realizable value of accounts receivable

Record transactions for each date. Calculate the net realizable value of accounts receivable at the end of 2012 and 2013

  Prepare a statement of cash flows using the indirect method

Prepare a statement of cash flows using the indirect method

  Estimate of the loss accrual

In addition, the co-op has agreed to pay the farmers interest at 2%, What factors should be considered in making an estimate of the loss accrual

  Carmack company has credit sales of 26 million for year

carmack company has credit sales of 2.6 million for year 2011. on december 31 2011 the companys allowance for doubtful

  Determine the book value per share of the preferred stock

Determine the book value per share of the preferred and common stock under two separate situations.

  Explain calculation of non-controlling interest balance

Consolidation adjustment/elimination journal entries that are required at the above financial year end date (i.e. for one year only).

  Doughboy bakery would like to buy a new machine for putting

doughboy bakery would like to buy a new machine for putting icing and other toppings on pastries. these are now put on

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!

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