What are two ways to speculate in the currency markets without investing any money up front?
What will be an ideal response?
To be long in the foreign currency, one can borrow domestic currency, convert to foreign currency in the spot foreign exchange market, and invest in the foreign money market while leaving the transaction exchange risk unhedged. The alternative way is to enter into a forward contract to buy the foreign currency forward. To be short in the foreign currency, one can borrow foreign currency, convert to domestic currency in the spot foreign exchange market, and invest in the domestic money market while leaving the transaction exchange risk unhedged. The alternative way is to enter into a forward contract to sell the foreign currency forward.
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Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or participating in sales-support programs?
A) product bundle pricing B) captive product pricing C) product line pricing D) dynamic pricing E) discount and allowance pricing
What is the best total cost that Nathan can incur?
A) $488,644 B) $492,780 C) $493,720 D) $484,382