You are patrolling a company parking lot and see two people trespassing near a car on the lot. you should first:

A corporate treasury working out of Vienna with operations in New York simultaneously calls Citibank in New York City and Barcla

WARRIOR [948]

Answer:

Given $1 million and the following quotes:

Bank C - $0.7551-61/€

Bank B - $0.7545-75/€

There are two different arbitrage strategies that can be attempted. The first is to buy euros from bank B, and then sell them to bank C:

Buy euros Bank B:

Euros to be bought = $1,000,000 x Euro / $ 0.7575

Euros to be bought = 1,320,132.01 Euros

Sell euros Bank C:

Euros to be sold = 1,320,132.01 euros x $0.7551 / Euro

Euros to be sold = $996,831.68

The profit/loss can be calculated by subtracting the original starting amount of dollars by the post-arbitrage amount:

Profit/loss = $996,831.68 - $1,000,000

Profit/loss = -$3,168.32

The second strategy involves buy euros from bank C and selling them to bank B: Buy euros Bank C:

Euros to be bought = $1,000,000 x Euro / $ 0.7561

Euros to be bought = 1,322,576.38 Euros

Sell euros Bank B:

Euros to be sold = 1,322,576.38 euro x 0.7545 / Euro

Euros to be sold = $997,883.88

The profit/loss can be calculated by subtracting the original starting amount of dollars by the post-arbitrage amount:

Profit/loss = $997,883.88 - $1,000,000

Profit/loss = -$2,116.12

In both instances a loss is made by the arbitrage. The arbitrager cannot make a profit using these quotes.

3 0

2 years ago

Read 2 more answers

On January 1, 2018, Olympic Insurance Company granted 30,000 stock options to certain executives. The options are exercisable no

Artyom0805 [142]

Answer:

Option D. $50,000.

Explanation:

We can solve it by two methods:

Method 1: Conceptually

The 30,000 stock options has vested period of 3 years, which means 10,000 stock options a year. Furthermore, according to accrual concept application in the employee benefits international standard on accounting, the increase in liability for compensating other party for its services is increase in expense. Here, increase in expense is the option fair value which is $5. So the Compensation expense is:

Compensation expense = $5 per stock option * 10,000 Stock Options per year

= $50,000 for the first year 2018

Method 2: Formula Method

As we know that:

Compensation expense for 2018 = Total compensation / Vested period

Here

Total compensation = $5 stock option * 30,000 options

Vested period is 3 years

By putting values, we have:

Compensation expense = (30,000 × $5)/3 years

Compensation expense = $50,000

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4 0

2 years ago

Comparing how many dollars it takes you to run your car each year to annual earnings on a job insteadof keeping track of costs i

stepan [7]

Answer:

B

Explanation:

Money has several functions, one of its principal function is using it as unit of account. By comparing the amount in dollars spent on running a car yearly to annual earnings instead of keeping track in terms of gasoline cost and quarts of oil shows that money has been used as a unit of account.

This means that the amount of gasoline gallons bought and quarts of oil has been essentially replaced by the cost of these purchases and hence avail is the power to use money as a unit of account

5 0

2 years ago

A very safe stock investment that generally attracts conservative investors is called a ________ stock. the dow 30 is made up of

Vladimir [108]

A very safe stock investment that generally attracts conservative investors is called a <u>blue chip</u> stock. the dow 30 is made up of such stocks.

The Dow Jones Industrial Average measures the average cost of 30 selected industrial stocks. This is important because the financial industry uses it to show the direction of the stock market over time.

The Dow Jones Industrial Average includes prices for only 30 companies and is a simple average. - The S&P 500 Stock Index is broader (500 shares) and represents a value-weighted average that gives more weight to the stocks with the largest market capitalization.

The Dow Jones Industrial Average is an index of 30 "blue chip" US industrial companies. The index includes a wide range of companies, from financial services companies to computer companies to retailers, but excludes transportation and utility companies included in another index.

Learn more about stock here brainly.com/question/25818989

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3 0

6 months ago

Inattentive Driving. While cutting class and driving off campus to check on her new dress for the upcoming formal, Molly, a busy

nataly862011 [7]

Answer:

C: Civil law and private law only

Explanation:

This won't be part of Public law as it generally works on the relationship between civilians and the government. However, in such a case, the matter can be sought privately, between molly and the owner of the car she damaged.

Obviously,. due to state laws in place that prohibit using a cell phone while driving this might also become a civil law situation.

4 0

2 years ago