"The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $.48. The following interest rates exist:

360-day borrowing rate
US: 7%
Switzerland 5%
360-day deposit rate
US: 6%
Switzerland: 4%

You need to purchase SF200,000 in 360 days. If you use a money market hedge, the amount of dollars you need in 360 days is ___.

Explanation:

1. Borrow SF 200,000 at a rate 5%, (SF200,000/1.05) = SF 190,476.

2. Convert SF 190,476 to USD at a spot $0.48

SF190,476 x $0.48 = $91,428

3. Invest $91,428 at 6% = $91,428 x1.06 = $96,914

i would say a penny hope it you

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.