An italian currency dealer has good credit and can borrow either $1,000,000 or €800,000 for one year. the one-year interest rate in the u. s. is i$ = 2% and in the euro zone the oneyear interest rate is i€ = 6%. the spot exchange rate is $1.25 = €1.00 and the one-year forward exchange rate is $1.20 = €1.00. show how to realize a certain euro-denominated 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. net profit $2,400.

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 proceeds back at the forward rate of $1.20 = €1.00. net profit $2,400.

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 proceeds back at the forward rate of $1.20 = €1.00. net profit €2,000.

d. both c) and b)

the answer is c i need to clear explain

Abc company currently pays a dividend of $2.15 per share, d0=2.15. it is estimated that the company’s dividend will grow at a rate of 30 percent per year for the next 3 years, then the dividend will grow at a constant rate of 7 percent thereafter. the market rate of return is 9 percent. what would you estimate is the stock’s current price?

Using the exxon data as an example what would be the market capitalization of penny's pickles if each share is selling for $175.35?

Alpha company uses the periodic inventory system for purchase & sales of merchandise. discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. unless otherwise noted, fob destination will apply to all purchases & sales. the value of inventory is based on periodic system. on january 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. alpha prepares monthly income statements. the following events occurred during the month of jan.: dateactivitya.jan. 3purchased on account 350 widgets for $11 each.b.jan. 5sold on account 400 widgets for $30 each. paid freight out with petty cash of $150.c.jan. 10purchased on account 625 widgets for $12 each.d.jan. 11shipping cost for the january 10 purchased merchandise was $400 was paid with a cheque by alpha directly to the freight company.e.jan. 12returned 50 widgets received from jan. 10 purchase as they were not the correct item ordered.f.jan. 13paid for the purchases made on jan. 3.g.jan. 21sold on account 550 widgets for $30 each. paid freight out with petty cash of $250.h.jan. 22authorize credit without return of goods for 50 widgets sold on jan. 21 when customer advised that they were received in defective condition.i.jan. 25received payment for the sale made on jan. 5.j.jan. 26paid for the purchases made on jan. 10.k.jan. 31received payment for the sale made on jan. 21.use this information to prepare the general journal entries (without explanation) for the january events. if no entry is required then enter the date and write "no entry required."