An investor enters into a 2-year swap agreement to euros at $1.32 per euro. Soon after the swap is created forward prices rise and the new swap price on a similar swap is $1.45
If dollar denominated interest rates are 4.0% and 4.5% on 1- and 2-year zero coupon government bonds, respectively, what is the gain to be made from unwrapping the original swap agreement?
A) $0.24
B) $0.45
C) $0.65
D) $0.82
A
You might also like to view...
Ellen wants to create a blog for her business. What is the best advice for her to follow?
A) ?Craft a catchy but concise title such as Five Ways to Ace an Interview. B) Provide details in the opening where they will not be missed by her readers. C) ?Avoid including visuals because they will distract her reader. D) ?Don't worry about her wording, especially her grammar, punctuation, and mechanics.
Marjam Company owns 41,000 shares of MacKenzie Company's 100,000 outstanding shares of common stock. MacKenzie Company pays $25,000 in total cash dividends to its shareholders. Marjam's entry to record the cash dividend received from MacKenzie would include a:
A. Debit to Dividend Revenue for $10,250. B. Credit to Equity Method Investments for $25,000. C. Credit to Dividend Revenue for $25,000. D. Credit to Equity Method Investments for $10,250. E. Debit to Interest Revenue for $10,250.
Which of the following choices accurately reflects how the recording of accrued salary expense affects the financial statements of a business? Assets=Liab.+EquityRev.?Exp.=Net Inc.Stmt ofCash FlowsA.NA=++???+=NANAB.NA=NA++?NA?NA=NANAC.NA=++?NA?+=?NAD.+=++NANA?+=?-OA
A. Option A B. Option B C. Option C D. Option D
Which of the following is true of Instagram & Snapchat’s user bases?
a. Instagram’s population base is larger than Snapchat and its users skew significantly older. b. Snapchat’s population base is larger than Instagram and its users skew significantly older. c. Instagram’s population base is larger than Snapchat and its users skew significantly younger. d. Snapchat’s population base is larger than Instagram and its users skew significantly younger. e. None of these.