The risk-free one-year interest rate in the swiss franc (chf) is 1.5%, while the risk-free one-year interest rate in the euro (eur) is 3.5%. the current spot exchange rate is chf 1.2000 (a) your swiss client (whose wealth and profits are in swiss francs) has an obligation of eur 10,000, six months from now. how can your client construct a money-market hedge, to fund this obligation without exchange-rate risk? assume your client can borrow and lend at the risk-free rate in both currencies. show that the strategy you propose is costless today and allows your client to meet his obligation at a fixed exchange rate that is known today. find that fixed exchange rate.

(b) you spot a six-month euro forward in the market that has a forward exchange rate of chf 1.2100 per eur. how can you make an arbitrage profit for your own firm in this case? ignore your client’s obligation from the previous part, and assume that your firm can also borrow and lend at the risk-free rate in both currencies, as well as buy or sell the euro forward.

(c) which parity relationship is violated by the forward contract in part 2b?

You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400

1. list five staple convenience goods that you or your household buys on a regular basis. (you do not need to use complete sentences. 2.5 points) 2. list three impulse convenience goods that you or someone you know has purchased. (you do not need to use complete sentences. 2.5 points) 3. describe a shopping good that you or someone you know purchased. what kind of research did you or that person do before buying the product? (1-5 sentences. 3.0 points) 4. choose an example of a company you could start, and decide which business structure would make the most sense for that type of company (sole proprietorship, partnership, llc, c corporation, s corporation, or nonprofit corporation). explain why this structure would be good for this type of company. give at least 3 reasons. (3-6 sentences. 6.0 points) 5. if you were starting a new business, describe at least three departments to the company that you would need right away. why are these departments so important? (1-5 sentences. 3.0 points) 6. describe a product that you think has saturated its market. what makes you think it has saturated its market? (1-5 sentences. 3.0 points)

Calculating and interpreting eps information wells fargo reports the following information in its 2015 form 10-k. in millions 2015 2014 wells fargo net income $24,005 $24,168 preferred stock dividends $1,535 $1,347 common stock dividends $7,400 $6,908 average common shares outstanding 5,136.5 5,237.2 diluted average common shares outstanding 5,209.8 5,324.4 determine wells fargo's basic eps for fiscal 2015 and for fiscal 2014. round answers to two decimal places.