Business, 18.02.2020 20:22 hahaiwannadie

Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 per ounce. This implies an exchange rate of $1.75 per pound. If the current market exchange rate is $1.60 per pound, how would you take advantage of this situation? Hint: assume that you have $350 available for investment.
A. Start with $350. Buy 10 ounces of gold with dollars at $35 per ounce. Convert the gold to £200 at £20 per ounce. Exchange the £200 for dollars at the current rate of $1.80 per pound to get $360.
B. Start with $350. Exchange the dollars for pounds at the current rate of $1.60 per pound. Buy gold with pounds at £20 per ounce. Convert the gold to dollars at $35 per ounce.
C. a) and b) both work
D. None of the above

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 07:30

What is the relationship between the national response framework and the national incident management system (nims)? a. the national response framework replaces the nims, which is now obsolete. b. the response protocols and structures described in the national response framework align with the nims, and all nims components support response. c. the nims relates to local, state, and territorial operations, whereas the nrf relates strictly to federal operations. d. the nims and the national response framework cover different aspects of incident managementâ€”the nims is focused on tactical planning, and the national response framework is focused on coordination.

Answers: 3

Answer

Business, 22.06.2019 23:00

Even sole proprietors should have at least how many computers? 1 2 3 4

Answers: 1

Answer

Business, 23.06.2019 00:20

E11-2 (multiple choice) identify the best answer for each of the following: which of the following statements about internal service fund liabilities is false? internal service funds may report both current and long-term liabilities. internal service funds may not issue bonds for financing purposes. internal service funds may report contingent liabilities. due to other funds would be reported as a current liability

Answers: 3

Answer

Business, 23.06.2019 00:30

Kim davis is in the 40 percent personal tax bracket. she is considering investing in hca(taxable) bonds that carry a 12 percent interest rate. what is her after- tax yield(interest rate) on the bonds?

Answers: 1

Answer

You know the right answer?

Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 pe...

Questions