Suppose that you are the treasurer of ibm with an extra u.s. $1,000,000 to invest for six months. you are considering the purchase of u.s. t-bills that yield 1.810 percent (that's a six month rate, not an annual rate by the way) and have a maturity of 26 weeks. the spot exchange rate is $1.00 = ¥100, and the six month forward rate is $1.00 = ¥110. the interest rate in japan (on an investment of comparable risk) is 13 percent. what is your strategy?

Answers

Answer 1
amoreandrusamoreandrus
Answer 2

Final answer:

In considering an investment in either U.S. T-bills or a comparable Japanese investment as the treasurer of IBM, you must determine whether the potential returns, accounting for interest and expected exchange rate fluctuations, outweigh the risks. The safer option may be U.S. T-bills due to their low risk and absence of currency exchange uncertainty. Nonetheless, a carry trade investment in Japan could offer higher returns dependent on exchange rate expectations and the interest rate differential.

Explanation:

If you are the treasurer of IBM with an extra US $1,000,000 to invest for six months and are considering the purchase of U.S. T-bills with a yield of 1.810 percent for a 26-week maturity versus a potential investment in Japan with a 13 percent interest rate, you must weigh the return on investment against currency exchange risks and potential gains or losses. Considering the spot exchange rate is $1.00 = ¥100 and the six-month forward rate is $1.00 = ¥110, there is an implied expectation that the yen will weaken against the dollar in the future. This could affect the return on your investment when converting back to dollars. In decision-making, one should calculate the potential returns of both options accounting for interest rates and expected changes in the exchange rate.

Assuming no transaction costs and taxes, and based on the available information, it appears likely that buying U.S. T-bills would be a safer option given the low risk associated with U.S. government securities and the lack of exchange rate uncertainty. However, there may be an opportunity for potentially higher returns through a carry trade by investing in Japan if one expects the yen to not depreciate more than the forward rate suggests, as well as the interest differential between the two countries making the risk worthwhile.

Considering the historical volatility of exchange rates and their impact on international investment returns, your strategy should be informed by careful examination of currency trends and the economic outlook for both the United States and Japan. The current and historical exchange rate movement between yen and dollar, as explained in the examples provided, underscores the importance of such an analysis in international finance decisions.


Related Questions

Jimland's government has severe restrictions toward the entry of foreign companies into the country. a foreign company interested in jimland would have to purchase an existing company in order to conduct its business there. hence, companies can only enter jimland through a _____.

Answers

Companies can only enter Jimland through a direct foreign investment. This is an investment that is made by an organization, company or an individual in a country in terms with the business interest of another country. This is suitable on the situation above.

Jimland's government has severe restrictions toward the entry of foreign companies into the country. a foreign company interested in jimland would have to purchase an existing company in order to conduct its business there. hence, companies can only enter jimland through a foreign direct investment. An FDI or a foreign direct investment is an investment that is made by someone or a business to control how the business is ran in another country. This is a foreign investment with direct control over the business.

The spillover effect is best explained in terms of the ______.

Answers

The spillover effect is best explained in terms of the two-factor theory. Although psychology based, marketers use this in developing marketing plans for their product or service. The two-factor theory is based on psychological emotions and cognitive thinking. 

The spillover effect is best explained in terms of the impact or influence that an economic activity or event has on other related sectors, industries, or entities beyond its immediate scope.

The spillover effect, also known as spillover impact or externality, refers to the unintended consequences or effects that occur outside the primary focus or scope of an economic activity or event.

These effects can be positive or negative and often extend beyond the immediate participants or sectors involved.

Spillover effects can manifest in various ways, such as the impact of pollution from a factory on the surrounding environment, the knowledge and innovation diffusion resulting from research and development investments, or the economic ripple effects generated by a particular industry on related sectors.

Spillover effects highlight the interconnectedness and interdependencies within an economy.

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What term describes the relationship between real gdp per hour worked and capital per hour​ worked, holding the level of technology​ constant?

Answers

A per worker production function would be your answer :)

Tax refunds:
a.occur when a taxpayer's income tax withholding exceeds what they owe
b.come from extra money the federal government has left over at the end of the year, and are distributed around february 15
c.come to taxpayers regardless of whether they file an income tax return or not
d.include interest paid to the taxpayer by the federal government based on holding that money throughout the tax year submit

Answers

The answer is A, occur when a taxpayer's income tax withholding exceeds what they owe.

What's the term for the profit made from selling a stock at a higher price than the price paid for the stock? A. Capital gain B. Depreciation C. Stock profit D. Dividend

Answers

I think the answer is capital gain

Answer:

A.) Capital Gain

Explanation:

Took the test and got it right! Good luck! God Bless you!

While ________ encourages free trade among canada, mexico and the united states, manufacturers and distributors must abide by local content requirements and rules of origin. can nafta cafta-dr lafta?

Answers

Nhshshhshshshhshshshshhs

Which of the following is a real job title on the Interactive Media career pathway?

A. Information Technology Engineer
B. Social Networking Specialist
C. Network Administrator
D. Fortran Language Programmer

Answers

Correct answer is B social networking specialist

Social Networking Specialist or SNS for short

The type of shipping paper used in highway transportation is called a:

Answers

The type of shipping paper used in highway transportation is called a "bill of landing".

A bill of landing refers to an authoritative archive or document between the shipper and bearer or carrier enumerating the sort, amount and goal of the merchandise being conveyed. The bill of landing likewise fills in as a receipt of shipment when the products are conveyed at the foreordained goal. This record must go with the dispatched merchandise paying little mind to the type of transportation and must be marked by an approved agent from the bearer, shipper and recipient.

Suppose iron ore is an input in producing steel. how will a decrease in the price of iron ore affect the market for​ steel

Answers

direct relation. If iron is used to make steel, and iron is cheaper now, steel will also be cheaper. Decrease in price can mean they have a bunch of it, a surplus.
Supply and demand says if you got a lot of something prices go down. So if you have a lot of cheap iron, you can make a lot of cheap steel

in a team, when you communicate good ideas without expecting credit, you are
a)participating
b)persuading
c)helping
d)sharing

Answers

d) you are sharing ideas

Answer:D

Explanation:

Apex

Habib is an arab prisoner being held in a u.s. prison. another prisoner, aham, attacks and seriously injures habib. habib's family in saudi arabia wants to file a lawsuit in a u.s. court against the american company that operates the prison, for negligently allowing habib to be injured. if habib's family wishes to file a lawsuit alleging a violation of a u.s. treaty, they may:

Answers

Alien Tort Claims Act.

Asbestos is a material that was once used extensively in construction. one risk from working in a building that contains asbestos is the development of asbestosis caused by the inhalation of asbestos fibers. cells will take up asbestos by phagocytosis, but are not able to degrade it. as a result, asbestos fibers accumulate in ________.

Answers

Cells will take up asbestos by phagocytosis, but are not able to degrade it. As a result, asbestos fibers accumulate in lysosomes.
Asbestos fibers are so small, they are easy to inhale, and some may become lodged in the lungs.
Nearly every animal cell has lysosomes. It is a membrane-bound organelle that contain hydrolytic enzymes that can break down many kinds of biomolecules. 

Asbestos fibers accumulate in the lungs. When asbestos-containing materials are disturbed and release airborne fibers, individuals working or living in the vicinity can inhale these microscopic fibers. Once inhaled, asbestos fibers become trapped in the respiratory system, primarily within the alveoli, the tiny air sacs in the lungs where gas exchange occurs.

The body's immune response recognizes these foreign fibers and attempts to remove them through a process called phagocytosis, where specialized immune cells called macrophages attempt to engulf and digest the asbestos fibers. However, asbestos fibers are extremely durable and resistant to degradation, which means that they cannot be broken down or eliminated by the body's normal defense mechanisms.

Over time, the accumulation of asbestos fibers in the lung tissue can lead to various health issues, including the development of conditions such as asbestosis, lung cancer, and mesothelioma. Asbestosis, in particular, is characterized by fibrosis (scarring) of the lung tissue due to the body's inability to clear the asbestos fibers, resulting in breathing difficulties and reduced lung function.

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The selling price of a television is​ $1,600 and the cost to the retailer is​ $225. what is the​ retailer's gross profit from the sale of the​ television?

Answers

Find the gross profit fro the sale of the television: 
Gross profit = Sales - Cost of goods sold 
Gross profit = $1,600 - $225
Gross profit = $1,375

The gross profit of a sale is the profit from sales minus the cost it took to produce/complete the item or service. 

_ occurs when a retail firm invests in and owns a retail operation in a foreign country

Answers

A direct investment, also known as a foreign direct investment occurs when a retail firm invest in and owns a retail operation in a foreign country. 

There are many benefits to a foreign direct investment and that's why a lot of retail firms go this route. A few advantages are: larger growth opportunities, goods sold and serviced around the world, benefits the global economy and the investors. 

Kieran wants to search a database quickly for information on the last time a patient came to his medical facility. This information is contained in one table. Which feature would make the most sense for him to use?

Answers

Short is the right answer

Final answer:

Kieran would most efficiently use a query to find information on a patient's last visit to a medical facility. Queries allow searching using primary keys or specific criteria to retrieve data quickly from a large table and can be saved for repeated use. An audit trail feature could also provide additional information about who accessed the records and any changes made.

Explanation:

Kieran can utilize several features to search a database quickly for information on a patient's last visit to a medical facility. The most efficient method would be to use a query. A query is designed to filter and retrieve data from a database efficiently, especially when dealing with large sets of records. Since databases often contain multiple tables, and each table can have thousands of records, queries are crucial for locating specific subsets of data without the need to scroll through all the records manually. For Kieran's needs, he could use a query to search the table using the primary key, which is usually the fastest way to find a specific record. In a medical database, the patient ID often serves as the primary key. Additionally, if the database were to employ an audit trail feature, he would also be able to see who accessed the patient's information, along with the changes made and the timestamps, thus maintaining a high standard of data integrity and security. The Find feature can also be practical when trying to locate a specific row in a large table without a complex query. Moreover, for repeated searches, saving the query allows for quick access in the future without having to recreate the conditions or instructions each time.

Henry conducted a survey on an ad done by his company. In the survey, he asked people to evaluate the ad and state whether they found it extremely poor, poor, good, very good, or excellent. What kind of test is Henry conducting in this survey?

day-after recall test

interview test

rating scale test

open-ended test

Answers

c rating scale test

Answer:

c

Explanation:

True or false: a country is possibly overinvesting in human capital if people are not educated enough to fill existing job openings.

Answers

A country is possibly over investing in human capital if people are not educated enough to fill existing job openings is false. A country would be over investing in human capital if people were overqualified for the jobs that were available. A good example of this would be a lawyer only able to get a job at a department store. The lawyer is well overqualified for the job however, that is all they can find available. 

Final answer:

The statement is false because a lack of qualified individuals for job vacancies indicates underinvestment in human capital. Human capital is key to economic growth, and while investment in education can lead to significant gains in workforce capabilities, the returns on such investments can vary depending on a country's current educational level.

Explanation:

True or false: a country is possibly overinvesting in human capital if people are not educated enough to fill existing job openings. This statement is false. When individuals in a country are not sufficiently educated to fill current job vacancies, it suggests that there is an underinvestment in human capital, not overinvestment. The human capital of a country, which includes the education, training, and skills of its workforce, is crucial for driving economic growth and productivity. In many low-income countries, the lack of funds and resources severely hampers the ability to invest in human capital, where even basic necessities such as proper classrooms and educational materials may be scarce, as indicated in multiple figures showing students in outdoor 'classrooms' without technology or standard school furniture.

Governments play a significant role in fostering human capital through the education system. In countries with low human capital levels, small investments in education can yield large returns in the form of a more capable workforce. However, in wealthier economies with high levels of education, additional government spending on education often faces scrutiny about its effectiveness in actually improving education quality. Moreover, the economic impact of excluding certain groups, such as women, from education is profound, as this restricts the development of human capital at a national level.

In a competitive labor market, when the government increases the minimum wage, the result is a(n) __________ in the quantity of labor supplied and a(n) __________ in the quantity of labor demanded. increase, increase increase, decrease decrease, increase decrease, decrease

Answers

In a competitive labor market, when the government increases the minimum wage, the result is an increase in the quantity of labor supplied and a decrease in the quantity of labor demanded. More people want to work when there is an increase in what they will be paid for their work. As more jobs are filled and less vacant ones are available the quantity of labor demanded goes down because these people are filling the jobs. 

Halima wants a Manufacturing career. She wants to be very successful and get paid well. Which career pays the highest salary?
Hand Packagers
Mechanical Engineer
Quality Control Inspectors
Environmental Engineering Technician

Answers

Answer:

B.  Mechanical Engineer.

Explanation:

Mean salary is around $87,000 in 2018

The career that pays the highest salary is Mechanical Engineer. Thus the correct option is B.

What is a Career?

A career is referred to what an individual chooses as a profession to earn something. A career of an individual is based on his talents, skills, and abilities which help him to seek growth and development and achive the goals of life.

The pay scale in a different industry is different from sector to sector and department to department. In order to seek higher pay in any profession one must carry desired skills and experience in order to utilize their abilities.

Among the given options, the mechanical engineer gets higher packages in a manufacturing career as it is associated with technical and machine work along with supervising and controlling.

Therefore, option B is appropriate.

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What state led the country in total value of exports to other countries in 2013?

Answers

It was Texas. It had a record breaking $279.5 billion worth of goods abroad in 2013 according to the US Trade Representative, Michael Froman. Its largest trade partner was Mexico and during that time, it was recorded that the state's manufacturers earned $100.9 billion in merchandise sales in Mexico.

How should an employee react when receiving constructive criticism?

Answers

Try to listen, and make the change if you think it will befit you. Don't dwell on it.
1. Stop your first reaction.
2. Remember the benefit of getting feedback.
3. Listen for understanding.
4. Say Thank You.
5. Ask questions to deconstruct the feedback.
6. Request time to follow up.

Salt is the only mineral that's harvested from the salar de uyuni.
a. True
b. False

Answers

For the answer to the question above, I believe Salar de Uyuni is in the Southwest of Bolivia. It is the largest salt flat in the world.
The answer for your question is false. Because there are other minerals that can be found there such as Gypsum, Halite, Malachite etc.

Answer: FALSE

Explanation:

There are other minerals that can be collected there

What type of company is required to have a code of ethics available to all employees?

Answers

All public trade companies are required to have a code of ethics available to all employees. 

A public company is one that is listed and operates publicly. They have stock that is freely traded or exchanged on the stock market and the general public can purchase shares. 

99 points!!!The table summarizes the education of four applicants for positions in the STEM career cluster.


Which best describes the jobs each applicant could obtain with their educational background?

Eli can work as an Astronomer, Blake can work as an Agricultural Engineer, Fiona can work as a Mathematician, and Zoey can work as a Conservation Scientist.

Eli can work as a Civil Engineer, Blake can work as an Aerospace Engineer, Fiona can work as a Park Naturalist, and Zoey can work as a Materials Scientist.

Eli can work as an Electro-Mechanical Technician, Blake can work as a Biochemist, Fiona can work as an Industrial Ecologist, and Zoey can work as an Archivist.

Eli can work as an Electronic Engineering Technician, Blake can work as a Museum Conservator, Fiona can work as a Robotics Engineer, and Zoey can work as a Mathematician.

Answers

It's for sure gotta be B, hope this helps, have an amazing day :)

Answer:

I think that it is B.

Explanation:

The ______________ social network has more than 400 million members worldwide, about 10 percent of whom are college students or recent graduates.

Answers

The LinkedIn social network has more than 400 million members worldwide, about 10 percent of whom are college students or recent graduates.

LinkedIn is a network for people to show their job experience, skillset, and more. People use LinkedIn to explore different career paths, acquire jobs, and connect with their friends in a professional environment.

If consumers are using health care services at a higher rate than in the past, health care providers will need to purchase more inputs, ranging from X-ray machines to bandages. This represents ________.

Answers

I believe the answer is: derived demand
derived demand refers to the demand for a certain product that only exist because of the increase of demand in another product.
For example, a demand in Programmers job market increased due to the increase of demand in consumer software. In this case, demand for programmers is considered as derived demand.

Sharon spent the weekend with her friend amelia. amelia proposed a plan for shoplifting cd's from a local music store. sharon was going to go to the store clerk, say she felt ill, and then pretend to faint. this distraction would allow amelia, at the other end of the store, to place cd's in her shopping bag without risk of being seen. at first sharon said that she could not do something like that because it is against the law. amelia argued that sharon would not be breaking the law, only amelia would. is amelia right? if a person can think of a way to profit by violating the law without risk, what reasons are there for not breaking the law?

Answers

In the given situation, Amelia is wrong. Anyone who is fully aware and  supported any criminal acts is considered a violator of the law. All people who participated in a criminal act is guilty of the crime. 

However, it will only be punishable if there are witnesses and evidence.

Final answer:

Amelia is not right; both she and Sharon could be prosecuted under accomplice liability if Sharon assists in the shoplifting scheme. People should not break the law because of the ethical implications, potential risk of being caught, and the importance of upholding the rule of law.

Explanation:

Understanding Accomplice Liability and Reasons Against Breaking the Law

Amelia's argument that only she would be breaking the law is not correct. In fact, if Sharon were to follow through with the plan, she could be charged under accomplice liability because her actions would be contributing to the commission of a crime. Even if Sharon's role is creating a distraction and she is not directly stealing, she is still participating in the planned crime by facilitating Amelia's shoplifting.

There are several reasons why a person should not break the law, even if they believe they can do so without risk. Firstly, the ethical and moral implications of committing crimes go beyond legal consequences; individuals are part of a society where their actions impact others, and maintaining the rule of law is critical to the order and wellbeing of society. Moreover, there is always a risk of unforeseen consequences, such as being caught despite the belief that one can profit without risk. Additionally, the negative impact on one's own conscience and the possible social ramifications, including loss of trust and respect from others, are important considerations.

Theft is a violation of the legal rights of others, and laws are in place to protect property rights and promote fairness within society. Therefore, engaging in shoplifting or any other form of theft, is illegal and unethical, regardless of the perceived lack of risk.

Which of these statements about life insurance benefits is false?

Answers

Employers normally require employees to pay a large portion of thecost of the life insurance benefit.

Contractionary monetary policy attempts to _____ aggregate demand by _____ interest rates.

Answers

1. Decrease
2. Increasing

When shopping for their brother, jack and james are presented with a red shirt by the sales person. while jack likes the shirt, jaymes dislikes the shirt. in this scenario, even though the color of the shirt is the same, jack and james disagree because of differences in their _____ of the shirt?

Answers

Jack and James disagree over a red shirt due to differences in their perceptions, which are influenced by their unique biases, preferences, and experiences. These differences highlight the subjectivity of personal taste and the complexity of individual likes and dislikes.

When shopping for their brother, Jack and James are presented with a red shirt by the salesperson. While Jack likes the shirt, James dislikes the shirt. In this scenario, even though the color of the shirt is the same, Jack and James disagree because of differences in their perceptions of the shirt. Perceptions can be influenced by many factors, including individual biases, preferences, and past experiences.

Personal preferences are subjective and are shaped by a variety of elements such as cultural influences, personal associations, or even physiological differences, as in the case where color might appear more vivid to younger individuals. These preferences are not necessarily tied to any inherent quality of the shirt itself but are instead a reflection of the individuals' tastes and experiences. What might be a vibrant, attractive shirt to one person could be perceived as too bold or unappealing to another, highlighting the role of subjectivity in personal taste.

Other Questions
When a grizzly bear hibernates, its heart rate drops to 10 beats per minute, which is 20% of its normal value. What is a grizzly bears normal heart rate when not hibernating? 6. The cost C of joining FitFast Gym includes an initial membership fee of $127, plus a monthlyfee, m, of $28.a. The cost of going to the gym is a function of the number of months of membership. Find arule for the function.b. Find the cost of using the gym for 9 months Jane has a checkbook balance of $68 she then writes two checks for $5 in one 46250 she also deposit $75 she then uses her calculator to determine her new balance in which of the following is a correct series of keys Which THREE sentences in this excerpt from Franklin D. Roosevelts Day of Infamy speech make an emotional appeal by suggesting that America's innocence was betrayed by certain enemies? Japan has, therefore, undertaken a surprise offensive extending throughout the Pacific area. The facts of yesterday speak for themselves. 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I ask that the Congress declare that since the unprovoked and dastardly attack by Japan on Sunday, December Seventh, 1941, a state of war has existed between the United States and the Japanese Empire A bicycle wheel has a radius of 13 inches.What is the distance the bicycle will travel after 30 revolutions of the wheel?Use 3.14 for .Enter your answer in the box. Please help ASAP !!!! Dora has a condition caused by the extreme deficiency of thyroid hormones. Her symptoms include puffy eyes, swelling around the cheeks, and tiredness. What is Doras diagnosis? 3 Questions!!! 1. From every hill slope came the trickle of running water, the music of unseen fountains. All things were thawing, bending, snapping. The Yukon was straining to break loose the ice that bound it down... Air-holes formed, fissures sprang and spread apart... And amid all this bursting, rending, throbbing of awakening life, under the blazing sun and through the soft-sighing breezes, like wayfarers to death, staggered the two men, the woman, and the huskies.The sensory details in this passage best help the reader to imaginea)the harsh weather conditions of winter.b)the hardships of the humans and dogs.c)the sense of hope that the characters feel.D)the sights and sounds of early spring.2.Those who were looking on heard what was neither bark nor yelp, but a something which is best described as a roar, and they saw Bucks body rise up in the air as he left the floor for Burtons throat... while a surgeon checked the bleeding, [Buck] prowled up and down, growling furiously, attempting to rush in, and being forced back by an array of hostile clubs.What do the sensory details in this excerpt help readers understand about Buck?A)He is as aggressive as a wolf when it comes to protecting those he loves.B)He has a deep anger and resentment for anyone other than Thornton.C)He will do whatever is necessary to protect himself from being abused.D)He cares very little about hiding the violent side of his personality.3.. . .Buck, still at the head of the team, but no longer enforcing discipline or striving to enforce it, blind with weakness half the time and keeping the trail by the loom of it and by the dim feel of his feet.This passage shows an end to an episode in Bucks life because heA)is too exhausted and wounded to move.B)is too miserable and angry to see the trail.C)no longer wants to be close to the other dogs.D)no longer cares about leading the dog team. solve the following system of equations: -2x+y=1 -4x+y=-1A)(3,1)B)(-1,3)C)(-1,-3)D)(1,3) Given ABC: DEF, find x.7.211.252018 Which of the following bodies of water lies between Australia and Papua New Guinea?Question 9 options:The Southern OceanThe Coral SeaThe Tasman SeaThe Torres Strait Write -1/6, 5/3, -5/6 in order from least to greatest.A. -1/6, -5/6, 5/3B. -5/6, -1/6, 5/3C. 5/3, -5/6, -1/6D. -1/6, 5/3, -5/6 What is the hypothesis in the following conditional statement? "If it is a Friday then Josie will receive her paycheck." A.It is a Friday. B.It is not a Friday. C.Josie will receive her paycheck. D.Josie will not receive her paycheck. what does sancho decide to do? Susan been a total of $26 at the State Fair she's mad she spent 9 on food in the rest of the money susan spent on games,g. 5.1x10^-1 as an ordinary number? Which of the following most accurately describes Russia? 1. It has many long coastlines but few good harbors and ports2. It has many useful rivers but its coastlines are short3. It has many long coastlines that make overseas trade easy4. It has a long arctic coastline but is landlocked on the east and west What is a brief summary of your academic and work history Select two risk factors for self-harming behaviorA. Being a teenager or young adultB. Being femaleC. Having high self-esteemD. Having never abused drugs or alcohol The Council of Trent was called to:Determine what heresies the Reformers taughtReaffirm the Catholic Church's teachingsAppoint the Jesuits as enforcersGive the pope more power throughout Europe.