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| Teaching Since: | May 2017 |
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MBA (IT), PHD
Kaplan University
Apr-2009 - Mar-2014
Professor
University of Santo Tomas
Aug-2006 - Present
Explain the difference between long and short positions"
2.) "There are approximately 7 billion people in the world. The developed countries number an estimated 1 billion. Based on the lecture explain how and why global business has grown, the risks inherent in that growth. In your discussion, discuss the BRICS and any other catagories that factor into global growth and why?"
3.)Assume you have $1,000,000 that you can invest for the next 180 days. Using only the data given below, answer the following questions. (a and b).
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Spot rate:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Yen 200 per U.S. Dollar
180 day forward rate:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Yen 210 per U.S. Dollar
Your forecast of the spot rate
In 180 days:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Yen 190 per U.S. dollar
U.S. interest rate (annual):Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 10%
Japanese interest rate (annual):Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 10%
a.)Â In which country would you invest your $1,000,000 if you decided to use the forward market? What total amount (in dollars) would you obtain at the end of 180 days? Show the necessary calculations.
b.)Â Â In which country would you invest your $1,000,000 if you are 100% certain that your forecast will come true? What total amount (in dollars) would you obtain at the end of 180 days.
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