eaglesjohnson414
11.12.2019 •
Business
Assume the current spot rate is c$1.2568 and the one-year forward rate is c$1.2455. also assume the nominal risk-free rate in canada is 3.7 percent compared to 4.1 percent in the u.s. using covered interest arbitrage, how much additional profit can you earn over that which you would earn if you invested $1 in the u.s for one year?
a) $.0054b) $.0042c) $.0008d) $.0015e) $.0061
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Ответ:
option (A) $0.0054
Explanation:
Data provided in the question:
Current spot rate = C$1.2568
One-year forward rate = C$1.2455
Nominal risk-free rate in Canada = 3.7% = 0.037
Nominal risk-free rate in U.S = 4.1% = 0.041
Now,
Value of $1 invested in C$ = 1 × Spot rate
= 1 × 1.2568
= C$1.2455
After 1 year the value of amount invested using nominal risk-free rate in Canada
= 1.2568 × ( 1 + 0.037 )
or
Final value of investment = C$1.3033016
Now,
Converting Final amount of investment back into $
= ( Final value of investment ) ÷ ( one-year forward rate )
= 1.3033016 ÷ 1.2455
= $1.0464
Value of amount invested in $ after 1 year using Nominal risk-free rate in U.S
= $1 × ( 1 + 0.041 )
= $1.041
Additional profit
= Final amount in $ after 1 year - Value of Amount invested
= $1.0464 - $1.041
= $0.0054
Hence,
The answer is option (A) $0.0054
Ответ:
Health statistics
Explanation:
''HEALTH STATISTICS are a vital part of the public health assessment function and are used to identify special risk groups, to detect new health threats, to plan public health programs and evaluate their successes, and to prepare government budgets.''
Health statistics are set of numbers concerning areas of health for example, number of mortality(mortality statistics), birth statistics, marriage statistics and so on.
Health statistics are used to predict the pattern of disease in group of people.