The SF spot exchange rate is $0.9520/SF and the € spot excha…

The SF spot exchange rate is $0.9520/SF and the € spot exchange rate is $1.1405/€. a.  What is the no arbitrage SF/€ spot rate? (3 points) b.  If a dealer is quoting a cross rate of SF1.2105/€, is there an arbitrage opportunity? Why or why not? (3 points) c.  If arbitrage profits are available, describe a strategy to exploit the arbitrage opportunity and calculate the arbitrage profits you would earn. Start by borrowing 100 units in one currency and show that at the end of your trades you have more than you borrowed.  (5 points)

You have just completed transactions in England and Japan. Y…

You have just completed transactions in England and Japan. You are now holding £5,000,000 and ¥150,000,000 and need to convert to U.S. dollars. Your currency dealer provides these quotations: USD/GBP  1.2455 – 1.2460 GBP/¥  0.00526 – 0.00556 What are your proceeds after conversion?

Susan is a project manager. She encourages her team members…

Susan is a project manager. She encourages her team members to conduct brainstorming sessions before initiating projects to determine the best method for delivering positive results. She provides them with complete authority to execute all production tasks independently. This scenario indicates that Susan promotes