An italian currency dealer has good credit and can borrow either $1,000,000 or €800,000 for one year. the one-year interest rate in the u. s. is i$ = 2% and in the euro zone the oneyear interest rate is i€ = 6%. the spot exchange rate is $1.25 = €1.00 and the one-year forward exchange rate is $1.20 = €1.00. show how to realize a certain euro-denominated profit via covered interest arbitrage.

a. borrow $1,000,000 at 2%. trade $1,000,000 for €800,000; invest at i€ = 6%; translate proceeds back at forward rate of $1.20 = €1.00. net profit $2,400.

b. borrow €800,000 at i€ = 6%; translate to dollars at the spot, invest in the u. s. at i$ = 2% for one year; translate proceeds back at the forward rate of $1.20 = €1.00. net profit $2,400.

c. borrow €800,000 at i€ = 6%; translate to dollars at the spot, invest in the u. s. at i$ = 2% for one year; translate proceeds back at the forward rate of $1.20 = €1.00. net profit €2,000.

d. both c) and b)

the answer is c i need to clear explain

Laval produces lamps and home lighting fixtures. its most popular product is a brushed aluminum desk lamp. this lamp is made from components shaped in the fabricating department and assembled in the assembly department. information related to the 22,000 desk lamps produced annually follows.direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow.fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. determine the plantwide overhead rate for laval using direct labor hours as a base.2. determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.3. compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.4. use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.