Determine interest arbitrage opportunity

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Reference no: EM133308204

Questions

1. Prospect that Multinational Corporation (MNC) obtain from the global existence.

-Provide logical explanations with example.

2. Values of currencies with low inflation.

Provide examples.

3. Translation exposure and transaction exposure with foreign exchange risk.

-Provide logical explanations with example.

4. Calculate cost of issuing common stock and the weighted average cost of capital.

5. Determine interest arbitrage opportunity.

-Does disparity exist? Please show details calculation.

6. Find ask rate and bid rate as well as calculate bid and ask spread.

7. Calculate forward outright rate and the annualized premium / discount.

Reference no: EM133308204

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