What will be the amount of us dollars

Assignment Help Financial Management
Reference no: EM132577868

The following is market information:

Current spot rate of pound= $1.45

90-day forward rate of pound=$1.46

3-month deposit rate in U.S.=1.1%

3-month deposit rate in Great Britain=1.3%

If you have $250,000 and use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days?

Reference no: EM132577868

Questions Cloud

Calculate annual rate of interest compounded quaterly : Calculate the nominal annual rate of interest compounded quarterly that is equivalent to 10% p.a. compounded semi-annually. Provide the suitable example.
Percentage return from covered interest arbitrage : What is your percentage return from covered interest arbitrage with $550,000 for one year?
Expected return on a risky asset : "The expected return on a risky asset depends only on that asset systematic risk ". Explain.
Compare optimal risky portfolio characteristics : Compare your optimal risky portfolio characteristics to those of the two individual stocks used in the portfolio. What do you find?
What will be the amount of us dollars : If you have $250,000 and use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars
Dollar bill financing cycle in days and money : Using the Cash Conversion Model, measure DOLLAR BILL'S financing cycle in both days and money ($US) using the following assumptions:
Research the current desktop processors : Argue on why you chose the particular manufacturers to meet the requirements of low-cost; mid-range and high performance computer.
Compute the incremental net income of the investment : The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here.
Virtual private networks technologies : Consider the VPN technologies studied in this session, including IPSec in the Tunnel mode, L2TP over IPsec, PPTP and SSL/TLS VPN.

Reviews

Write a Review

Financial Management Questions & Answers

  What are mary maximum profit and maximum loss

What is the break-even point for Mary? What are Mary’s maximum profit and maximum loss?

  Interest income will you have to declare on your tax return

How much interest income will you have to declare on your tax return?

  Sensitive is ocf to an increase of one unit in quantity sold

How sensitive is OCF to an increase of one unit in the quantity sold?

  What will be the price of the shares

Shareholders require a 10% return on shares for the first year 11% the next and 12% after that date. What will be the price of the shares?

  What would you pay for the call option

A firm has stock outstanding with a current price of $25 per share. The price in one period is expected to be either $30 or $35. A call option on ONE share is available with an exercise price of $20. If the risk-free rate of interest is 5%, what woul..

  Perform in-depth-five years-financial analysis of that firm

Select a corporation and perform an in-depth, five years, financial analysis of that firm. The firm’s ability for raising capital.

  Resident for taxation purpose

As a middle-aged entrepreneur,Molly is planning the financial future of her family. So she seeks opinions from you, a financial advisor,about the matters listed below. Assume Molly is an Australian resident for taxation purpose.

  Analyze the financial and sustainability-csr reports

ACCT2127 : Assume you are preparing the report for a friend who wishes to invest in a business which conducts itself in a socially and environmentally.

  Considering two alternatives for manufacturing certain part

A company is considering two alternatives for manufacturing a certain part.

  What might investors expect to pay for the stock one year

A stock paying $5 in annual dividends sells now tor $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now?

  Calculate the percent interest rate or effective cost

Determine the amount of interest the bank would make on each loan and indicate the amount of net proceeds that the bank would pay out on each loan. On which loan would the customer receive the most proceeds? Calculate the percent interest rate (APR) ..

  Which option would provide the highest amount of money

Which option would provide the highest amount of money in your investment account at your retirement which you can assume is exactly 40 years from today.

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