4. Let's assume that we have $10 million with the following bid - ask quotations for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
4. Let's assume that we have $10 million with the following bid - ask quotations for Lao/USD in given interbank markets: Laos Thailand bid 17.232 16.529,9 ask 17.363 17.112.22 a. Do you see the market discrepancy? b. How does a locational currency arbitrage work? Profit or loss? 4. Let's assume that we have $10 million with the following bid - ask quotations for Lao/USD in given interbank markets: Laos Thailand bid 17.232 16.529,9 ask 17.363 17.112.22 a. Do you see the market discrepancy? b. How does a locational currency arbitrage work? Profit or loss?
Expert Answer:
Answer rating: 100% (QA)
a Yes there is a market discrepancy as the bidask spread is wider than usual The bidask spread of LaoUSD in the given interbank markets is 0131 which ... View the full answer
Related Book For
Business Statistics in Practice
ISBN: 978-0077404741
6th edition
Authors: Bruce Bowerman, Richard O'Connell
Posted Date:
Students also viewed these accounting questions
-
In a survey of 100 insurance claims, 40 are fire claims (FIRE), 16 of which are fraudulent (FRAUD). Also, there are a total of 40 fraudulent claims. a. Construct a contingency table summarizing the...
-
On October 1, 2016, Ellis Company establishes an imprest petty cash fund by issuing a check for $150 to Pat Harmon, the custodian of the petty cash fund. On October 31, 2016, Pat Harmon submitted the...
-
Payment of insurance in advance may be recorded in either (a) an expense account or (b) an asset account. Which method would you recommend? What periodic entries are required under each method?
-
Which of the following is a batch-level activity of Clear Water Bay Inc, a car manufacturer? 1. Its CEO attends auto shows to demonstrate the latest model of cars. 2. Its engineers remediate a design...
-
Dimensions of cross section: b = 220mm, t = 12 mm, h = 600mm, h1 = 570 mm, and V = 200 kN. A wide-flange beam (see figure) having the cross section described below is subjected to a shear force V....
-
On June 2, 2017, Betty Rice opened Betty's Art Studio in Toronto. The following transactions occurred in June: 2017 June .... 2 Betty Rice invested $12,000 in the art studio. ........... 3 Paid three...
-
The Corporate Winner and People's Choice Winner was Daniel Gallagher from NASA's Scientific Visualization Studio, for his video "Martian Atmosphere Loss Explained by NASA." Watch this video and...
-
William Bevilles computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D = 19,500 units/year Ordering cost S = $25/order Holding cost H = $4/unit/year (a)...
-
Image transcription text Question WHP8-Q1. The system in figure is composed of: m1,Ic . a disc of radius r = 0.5 m, mass m1 = 0.5 kg and moment of inertia Ic = 62.5 g.ma, with respect to its centre...
-
Using a linear programming framework and the data from case Exhibit 1, formulate and solve the problem of finding the cost-minimizing set of bids that meet Mars' business requirements and determines...
-
DJ Corporation manufactures gadgets. At the end of the period, DJ has $18,600 of finished gadgets, $5,400 of work-in-process gadgets, and $11,000 in raw materials onsite. It also has the following...
-
Year = 2020 - 2021 -2022 Turnover = 786 -841 -900 Cost of Sales = 503 -563 -630 Gross Profit = 283 -278 - 270 Admin Costs = 109 -122 -137 Net Profit = 174 -156 -133 Dividends = 50 -80 -80 Retained...
-
Essay on the movie gone girl .. develop a plan for each of the main characters to improve her or his listening behavior and mention at least three effective or ineffective uses of presentation aids...
-
Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost per Cost per...
-
A resident company pays a net $7,200 fully imputed dividend to each of its five shareholders. Work out how each of the shareholders are taxed, assuming the following additional tax information: Tom...
-
Vivid Company acquired a machine on January 1, 20x1 for P10,000,000. The machine has an 8-year useful life with a P1,000,000 residual value and was depreciated using the sum of the year's digits...
-
HADM 1210 Lecture Outline Chapter 4 1. Key outcome for the chapter is to expand your understanding of accrual basis accounting and the adjustments needed to ensure the proper recognition of revenues...
-
AB CORPORATION ISSUED THE FOLLOWING 850 COMMON STOCKS PAR VALUE P100 750 PARTICIPATING PREFERRED STOCKS PAR VALUE P100 AT 3% AB CORPORATION DECLARED P100,000.00 DIVIDEND IN 2022.
-
A report on the 1995 National Health Risk Behavior Survey, conducted by the Centers for Disease Control and Prevention, can be found at the CDC website [www.cdc.gov: More Data & Statistics: CDC Data...
-
A telemarketing firm has studied the effects of two factors on the response to its television advertisements. The first factor is the time of day at which the ad is run, while the second is the...
-
Western Steakhouses, a fast-food chain, opened 15 years ago. Each year since then the number of steakhouses in operation, y, was recorded. An analyst for the firm wishes to use these data to predict...
-
In a large office building, there is a woman dead in her locked office, sitting at her desk. Except for the desk, chair, and contents on the desk, the office is empty and the air conditioner is...
-
How many birthdays does the average person have?
-
There are 5 different color houses, occupied by people of 5 different nationalities, who smoke 5 different cigar brands, drink 5 different types of alcohol, and have 5 different pets. The houses are...
Study smarter with the SolutionInn App