)a currency dealer has good credit and can borrow either $1,000,000 or €800,000 for one year. the one-year interest rate in the u. s. is i$ = 5% and in the euro zone the one-year interest rate is i€ = 4%. the spot exchange rate is $1.25/€ and the one-year forward exchange rate is $1.40/€. a.) show how to realize a certain profit via covered interest arbitrage.
a) borrow $1,000,000 at 2%. trade $1,000,000 for €800,000; invest at i_€=6%; translate proceeds back at forward rate of $1.20 = €1.00, gross proceeds = $1,017,600
b) borrow €800,000 at i_€=6%. translate to dollars at the spot, invest in the u. s at i_$=2% for one year; translate €848,000 back into euro at the forward rate of $1.20 = €1.00 net profit $2400
c) borrow €800,000 at i_€=6%. translate to dollars at the spot, invest in the u. s at i_$=2% for one year; translate €850,000 back into euro at the forward rate of $1.20 = €1.00 net profit $2000
d) both c and b.

Dyed-denim corporation is seeking to lower the costs of value creation and achieve a low-cost position. as a result, it plans to move its manufacturing plant from the u.s. to thailand, which based on company research, is the optimal location for production. this strategic move will most likely allow the company to realize

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.

Paying attention to the purpose of her speech, which questions can she eliminate? a. 1 and 2 b. 3 c. 2 and 4 d. 1-4