Premium Essay

Blue Demon Bank

In:

Submitted By sagarsbh
Words 341
Pages 2
Blue Demon Bank expects that the Mexican peso will depreciate against the dollar from its spot rate of $.15 to $.14 in 10 days. The following interbank lending and borrowing rates exist: Lending Rate Borrowing Rate U.S. dollar 8.0% 8.3% Mexican peso 8.5% 8.7% * Assume that Blue Demon Bank has a borrowing capacity of either $10 million or 70 million pesos in the interbank market, depending on which currency it wants to borrow. * How could Blue Demon Bank attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy.

ANSWER: Blue Demon Bank can capitalize on its expectations about pesos (MXP) as follows: 1. Borrow MXP70 million 2. Convert the MXP70 million to dollars: MXP70,000,000 × $.15 = $10,500,000 3. Lend the dollars through the interbank market at 8.0% annualized over a 10day period. The amount accumulated in 10 days is: $10,500,000 × [1 + (8% × 10/360)] = $10,500,000 × [1.002222] = $10,523,333 4. Repay the peso loan. The repayment amount on the peso loan is: MXP70,000,000 × [1 + (8.7% × 10/360)] = 70,000,000 × [1.002417]=MXP70,169,167 5. Based on the expected spot rate of $.14, the amount of dollars needed to repay the peso loan is: MXP70,169,167 × $.14 = $9,823,683 6. After repaying the loan, Blue Demon Bank will have a speculative profit (if its forecasted exchange rate is accurate) of: $10,523,333 – $9,823,683 = $699,650 In addition, the use of forwards, futures and options in the foreign exchange market helps a company to provide insurance to protect against the possible adverse consequences of unpredictable changes in exchange rates. As you recall, the spot exchange rate is the rate at which a

Similar Documents

Free Essay

Beautiful Nature

...azing upward, I see daylight glinting through the clears out. The trees of Oirase stand like respected, insightful persons. Looking upward from the streambed where I stand, I see dark green leaves of August, loaded with life, stretching out from treetops and branches toward little fixes of blue sky. Nothing is more meriting commendation than a tree that has persevered. Excellence drawing closer godlikeness. Not a thing is absent. Flawlessness. Its trunk, gigantic. Its bark, thick. In Japanese it is called mizunara- - water oak. Its name gets from the expansive measure of water it stores. These trees develop to 100 feet in tallness; I am informed that their normal age is around 300 years. As I look upward, the consistent mumble of the mountain stream purifies my ears, punctuated every now and then with the peeping of fowls. Could there be a winged animal that does not sing? Could there be a tree that does not reach toward the sky? The tree stakes its exceptionally presence on only one thing. It needs just to completely show the force it has covered up inside. "I will carry on with my life! I will completely develop and idealize my life!" Without perplexity or faltering, glad, superb, the tree lives as it may be, consistent with itself. What's more, in the place where there is Oirase, such respectable trees line the streambeds in "green forests." And the name Aomori, the prefecture in which Oirase is found, signifies "green forests." It was...

Words: 781 - Pages: 4

Free Essay

Eon's Past

...Eon’s past by Kris a. gill It was a day just like this, except…that day was the day that my life was going to change before it had even started to be written. I was a newborn in this world, no parents, no relatives, no one to watch over me…it was as if I had just suddenly appeared into existence like the snap of a finger. I was just there with no meaning to live or to even exist in this world, but seeing as I was just a baby I could not end myself…but I sure wish I could’ve done so. Not too long after I was born a dark figure approached me and picked me up from the patch of grass in which I laid on and held me in his arms. The words he said to me as I looked up at him were, “You’re perfect…” He carried me to his house and tooked me to what seemed to be some sort of laboratory. As he sat me down on a cold steel top he began to examine me as if to make sure that I was perfectly healthy. At the time I found it quite amusing and giggled as he did his normal examinations. After a week I had grown rather close to him and thought of him as my father…I was happy as a baby could be…but I soon realized that happiness would not last forever and I will also realize what he meant by me being perfect when we first met…it was a Sunday, he brought me back to his lab but this time something felt wrong. I felt something sinister in the air as he placed me down on what looked like an operating table. I looked across the room and saw a small kitten with fur that was once black and now was...

Words: 1808 - Pages: 8

Free Essay

City of Glass

...THE MORTAL INSTRUMENTS Book Three City of Glass Margaret K. McElderry Books An imprint of Simon & Schuster Children​s Publishing Division 1230 Avenue of the Americas, New York, New York 10020 This book is a work of fiction. Any references to historical events, real people, or real locales are used fictitiously. Other names, characters, places, and incidents are products of the author​s imagination, and any resemblance to actual events or locales or persons, living or dead, is entirely coincidental. Copyright Š 2009 by Cassandra Claire, LLC All rights reserved, including the right of reproduction in whole or in part in any form. Library of Congress Cataloging-inPublication Data Clare, Cassandra. City of glass / Cassandra Clare.​1st ed. p. cm.​(The mortal instruments; bk. 3) Summary: Still pursuing a cure for her mother​s enchantment, Clary uses all her powers and ingenuity to get into Idris, the forbidden country of the secretive Shadowhunters, and to its capital, the City of Glass, where with the help of a newfound friend, Sebastian, she uncovers important truths about her family​s past that will help save not only her mother but all those that she holds most dear. ISBN-13: 978-1-4391-5842-5 ISBN-10: 1-4391-5842-8 [1. Supernatural​Fiction. 2. Demonology​Fiction. 3. Magic​Fiction. 4. Vampires​Fiction. 5. New York (N.Y.)​Fiction.] I. Title. PZ7.C5265Ckg 2009 [Fic]​dc22 2008039065 Visit us on the World Wide Web: http://www...

Words: 152069 - Pages: 609

Premium Essay

Aplit

...How to Read Literature Like a Professor Morgan Banks 1.)Introduction: How'd He Do That? Memory affects the reading of literature because it helps you make connections and recognize patterns. Patterns, in turn, can reveal hidden meanings and truths in the text- if something is mentioned repeatedly, thats a big clue that is of vital importance to fully understanding the piece of literature. Finally symbols show what text cannot and guide you to a more complete understanding of the underlying point. A complicated novel will often include many characters, one central plot, and numerous sub-plots. Pattern recognition allows us to see the relationships between character, actions, and ideas. A time when symbolism enhanced my understanding when reading a literary work, was when i was reading The Great Gatsby by F. Scott Fitzgerald. The symbol is the green light, which sits across the water from Gatsby's house. Gatsby stood at the end of his garden with arms outstretched, desperately trying to reach the green light. The green light symbolizes how desperately Gatsby want Daisy back in his life- however, his failure to reach the green light demonstrates how Daisy is ultimately gone from his life forever. 2.)Chapter 1: Every trip is a quest (Except when it's not) Story I have chosen is Percy Jackson and the Lightning Thief A.) Our questor: A young boy with dyslexia and ADHD who finds out he is a demigod and that...

Words: 2653 - Pages: 11

Premium Essay

Star Wars Speech Band 5

...For the record, the Tigers would only win one more game for the year. That win would come against the Swans in Round 22 at the SCG. But the later part of season 1990 wasn’t about winning or losing. It was about survival. On August 15th 1990, Richmond President Neville Crowe announced that the club needed to raise $1 million by October 31st (in six weeks) or it would cease to exist. It was an impossible task. Or so it seemed. Tigerland was on its knees as attendances and membership had collapsed. In stepped the Tiger spirit as administrators, coaches, players, sponsors, staff and of course members & supporters rallied together to lift the club off the canvass. Somehow…..they did it. The Tigers past players association donated their entire bank account, some $60,000, to the cause. School kids gave their pocket money. Opposition players and spectators rallied and gave thousands of dollars at every match for the remainder of the season. The Tigers even dug up the hallowed turf at Punt Road and sold it to the highest...

Words: 1641 - Pages: 7

Free Essay

James Gao

...The credit default swaps and useless thin air creation of value have plagued the economy in ways similar to that of the Dark Ages. I am a massive fan of that period of time in the sense that turmoil paves for progress, but can simultaneously work the other way around (especially in the case of the book). Our economy has been through that type of age a few times already only in the past century. We are in a better time with regards to physical health. Mental health possibly hasn't changed much since then and same with intelligence when talking about economics. One aspect in the mainstream human character that has gotten worse is the humanity coupled with empathy. We are all humans and all desire greed, vanity, fallacy, and iniquity to some degree. Because of that, I certainly understand the buying of subprime mortgage bonds which led to the crash. Michael Burry is not depicted as some kind of heathen criminal despite the effect he had on the world. In modern day, his type of scheme based thievery would not be considered deviant enough to constitute crime. Truth be told, he simply saw what was going to happen, so he capitalized on it. If he didn't do it, then someone else would have, and they'd be the rich guy. He and Eisman are nothing short of geniuses who had the capabilities of transcending groupthink. Fiat engineering is theoretically and technically not stealing in accordance to the time and space currently inhabited by this collective consciousness of man-made laws. Collapses...

Words: 4139 - Pages: 17

Free Essay

Rap Soul Star

...Intro I’m a fucking lion, born on MT Zion That means I’m an angel doomed to this earth You can trap my body, but I will free this verse Beat Drop Verse 1 I will rip you apart with my fucking heart I mean my fucking art, call it hip hop, It makes my heart stop and do a flip flop When I hear that verse that gives me chills Like AB soulo when he spitting that real Look our government on some other shit Like exploit the poor and get rich off the shit I got this beat from King Tip, call me Queen Bri Born in the south, disguised in poverty That mean we run our mouth, no more slavery You can trap me physically, but my mind been free I put a knife in your gut just to shut you up Your rhymes are obese, my rhymes are super fit My lines win the race and you just need to quit Im Eating vegetables so my wallet don’t get sick That mean my money green and its really long You can Call me daddy long legs cz I’m 5’9, And look I’m fine without 9n’s Stepped on the scene looking like top model Body slim, shaped like a diet coke bottle That means I’m a size three, like my three eyes see My mind is 360, you can’t fuck with me All these fake emcees spitting they debris Making my nerves itch, call is nervous fleas The knowledge I spit will need a decree And after my thesis you will earn a degree Now your soul has been set free, by Queen Bri And You been educated by one of the greatest And I’m still an underdog, haven’t even made it But I’m on some other shit like...

Words: 2845 - Pages: 12

Premium Essay

Social Change

........... 6 II. Embracing God’s Will concerning Healing....................................................... 6 III. Faith-Picturing—Seeing in the Spiritual Realm............................................... 7 IV. Faith-Picturing Jesus .................................................................................11 V. Faith-Picturing the Body Healed ...................................................................13 VI. God’s Power and Energy is the Force that Heals............................................14 VII-VIII. God’s Healing Power, the Holy Spirit, and the Light of God .....................15 IX-X. The Vulnerability of the Christian & Spiritual Conflict ..................................19 XI. A Biblical View of Demons..........................................................................22 Practical Steps & Principles for Releasing the Lord’s Healing Power .............................. 25 Application Exercises......................................................................................32 Divine Healing Toolbox (James 5:14-18)...

Words: 45798 - Pages: 184

Premium Essay

Unemployment

...TIME ALLOWED : 2 Hours No. of Sections : 3 , 55 questions in each section. No. of Questions: 165 CAT-1999 SECTION I Number of questions: 55 DIRECTIONS for questions I to 5: Sentences given in each question, when properly sequenced, form a coherent paragraph. Each sentence is labelled with a letter. Choose the most logical order of sentence from among the four given choices to construct a coherent paragraph. 1. A. In rejecting the functionalism in positivist organization theory, either wholly or partially, there is often a move towards a political model of organization theory. B. Thus the analysis would shift to the power resources possessed by different groups in the organization and the way they use these resources in actual power plays to shape the organizational structure. C. At the extreme, in one set of writings, the growth of administrators in the organization is held to be completely unrelated to the work to be done and to be caused totally by the political pursuit of self- interest. D. The political model holds that individual interests are pursued in organizational life through the exercise of power and influence. 1. ADBC 2. CBAD 3. DBCA 4. ABDC 2. A. Group decision making, however, does not necessarily fully guard against arbitrariness and anarchy, for individual capriciousness can get substituted by collusion of group members. B. Nature itself is an intricate system of checks and balances, meant to preserve the delicate balance...

Words: 17948 - Pages: 72

Premium Essay

Summary Of Chapter 1 The Great Gatsby Dialectical Journal

...beds, the source and fountain of them all. The workers in each of them had their own peculiar diseases.” Jurgis is surprised by the working conditions along with the workers resolve despite obvious hazards. He goes on to list a few that he saw and noted the possible risk of disease or infection. Chapter 10: Reflect Passage Response “This was more cruel yet for Ona, who ought to have stayed home and nursed him, the doctor said, for her own health as well as the baby's; but Ona had to go to work, and leave him for Teta Elzbieta to feed upon the pale blue poison that was called milk at the corner grocery.” I find this really depressing. Ona has just given birth, and for one should be resting her body, but also spending time with her new child. It shows that the aids and help for pregnant women before and after birth have not been created or enforced yet. Chapter 11: Question Passage Response “Until she could find another bank there was nothing to do but sew them up in her clothes, and so Marija went about for a week or more, loaded down with bullion, and afraid to cross the street in front of the house, because Jurgis told her she would sink out of sight in the mud.” How was she able to sew them into her clothes? Why is finding a safe space in the home not an option? Chapter 12: Evaluate Passage Response “All that they knew how to do was to hold the frozen fingers near the fire, and so little Stanislovas spent most of the day dancing about in horrible agony, till Jurgis...

Words: 3392 - Pages: 14

Premium Essay

Literature

...The Heart of Darkness Joseph Conrad I) II) III) IV) XML version 30 November 1997 by David Megginson, dmeggins@microstar.com (still needs to be proofread against the printed edition). TEI markup added April 1995 by David Megginson, dmeggins@aix1.uottawa.ca Corrections to typos made 6/22/94 by PDCChristy@aol.com Original etext came from the Online Book Initiative (OBI) via the Internet Wiretap [obi/Joseph.Conrad/heart.of.darkness.txt] The Heart of Darkness I The Nellie, a cruising yawl, swung to her anchor without a flutter of the sails, and was at rest. The flood had made, the wind was nearly calm, and being bound down the river, the only thing for it was to come to and wait for the turn of the tide. The sea-reach of the Thames stretched before us like the beginning of an interminable waterway. In the offing the sea and the sky were welded together without a joint, and in the luminous space the tanned sails of the barges drifting up with the tide seemed to stand still in red clusters of canvas sharply peaked, with gleams of varnished spirits. A haze rested on the low shores that ran out to sea in vanishing flatness. The air was dark above Gravesend, and farther back still seemed condensed into a mournful gloom, brooding motionless over the biggest, and the greatest, town on earth. The Director of Companies was our captain and our host. We four affectionately watched his back as he stood in the bows looking to seaward. On the whole river there was nothing that looked...

Words: 28536 - Pages: 115

Free Essay

Bloodlines of the Illuminati

...Bloodlines of Illuminati by: Fritz Springmeier, 1995 Introduction: I am pleased & honored to present this book to those in the world who love the truth. This is a book for lovers of the Truth. This is a book for those who are already familiar with my past writings. An Illuminati Grand Master once said that the world is a stage and we are all actors. Of course this was not an original thought, but it certainly is a way of describing the Illuminati view of how the world works. The people of the world are an audience to which the Illuminati entertain with propaganda. Just one of the thousands of recent examples of this type of acting done for the public was President Bill Clinton’s 1995 State of the Union address. The speech was designed to push all of the warm fuzzy buttons of his listening audience that he could. All the green lights for acceptance were systematically pushed by the President’s speech with the help of a controlled congressional audience. The truth on the other hand doesn’t always tickle the ear and warm the ego of its listeners. The light of truth in this book will be too bright for some people who will want to return to the safe comfort of their darkness. I am not a conspiracy theorist. I deal with real facts, not theory. Some of the people I write about, I have met. Some of the people I expose are alive and very dangerous. The darkness has never liked the light. Yet, many of the secrets of the Illuminati are locked up tightly simply because secrecy is a way...

Words: 206477 - Pages: 826

Premium Essay

Mount Fuji

...Employers, job seekers, and puzzle lovers everywhere delight in William Poundstone's HOW WOULD YOU MOVE MOUNT FUJI? "Combines how-to with be-smart for an audience of job seekers, interviewers, Wired-style cognitive science hobbyists, and the onlooking curious. . . . How Would You Move Mount Fuji? gallops down entertaining sidepaths about the history of intelligence testing, the origins of Silicon Valley, and the brain-jockey heroics of Microsoft culture." — Michael Erard, Austin Chronicle "A charming Trojan Horse of a book While this slim book is ostensibly a guide to cracking the cult of the puzzle in Microsoft's hiring practices, Poundstone manages to sneak in a wealth of material on the crucial issue of how to hire in today's knowledge-based economy. How Would You Move Mount Fuji? delivers on the promise of revealing the tricks to Microsoft's notorious hiring challenges. But, more important, Poundstone, an accomplished science journalist, shows how puzzles can — and cannot — identify the potential stars of a competitive company.... Poundstone gives smart advice to candidates on how to 'pass' the puzzle game.... Of course, let's not forget the real fun of the book: the puzzles themselves." — Tom Ehrenfeld, Boston Globe "A dead-serious book about recruiting practices and abstract reasoning — presented as a puzzle game.... Very, very valuable to some job applicants — the concepts being more important than the answers. It would have usefulness as well to interviewers with...

Words: 78201 - Pages: 313

Free Essay

Carl Jung

...[pic] CARL JUNG   1875 - 1961   Dr. C. George Boeree   [pic] Anyone who wants to know the human psyche will learn next to nothing from experimental psychology.  He would be better advised to abandon exact science, put away his scholar's gown, bid farewell to his study, and wander with human heart throught the world.  There in the horrors of prisons, lunatic asylums and hospitals, in drab suburban pubs, in brothels and gambling-hells, in the salons of the elegant, the Stock Exchanges, socialist meetings, churches, revivalist gatherings and ecstatic sects, through love and hate, through the experience of passion in every form in his own body, he would reap richer stores of knowledge than text-books a foot thick could give him, and he will know how to doctor the sick with a real knowledge of the human soul. -- Carl Jung Freud said that the goal of therapy was to make the unconscious conscious. He certainly made that the goal of his work as a theorist. And yet he makes the unconscious sound very unpleasant, to say the least: It is a cauldron of seething desires, a bottomless pit of perverse and incestuous cravings, a burial ground for frightening experiences which nevertheless come back to haunt us. Frankly, it doesn't sound like anything I'd like to make conscious! A younger colleague of his, Carl Jung, was to make the exploration of this "inner space" his life's work. He went equipped with a background in Freudian theory, of course, and with an apparently inexhaustible...

Words: 7916 - Pages: 32

Premium Essay

Poem

...Classic Poetry Series Robert Frost - poems - Publication Date: 2004 Publisher: PoemHunter.Com - The World's Poetry Archive "In White": Frost's Early Version Of Design A dented spider like a snow drop white On a white Heal-all, holding up a moth Like a white piece of lifeless satin cloth Saw ever curious eye so strange a sight? Portent in little, assorted death and blight Like the ingredients of a witches' broth? The beady spider, the flower like a froth, And the moth carried like a paper kite. What had that flower to do with being white, The blue prunella every child's delight. What brought the kindred spider to that height? (Make we no thesis of the miller's plight.) What but design of darkness and of night? Design, design! Do I use the word aright? Anonymous submission. Robert Frost www.PoemHunter.com - The World's Poetry Archive 2 A Boundless Moment He halted in the wind, and -- what was that Far in the maples, pale, but not a ghost? He stood there bringing March against his thought, And yet too ready to believe the most. "Oh, that's the Paradise-in-bloom," I said; And truly it was fair enough for flowers had we but in us to assume in march Such white luxuriance of May for ours. We stood a moment so in a strange world, Myself as one his own pretense deceives; And then I said the truth (and we moved on). A young beech clinging to its last year's leaves. Robert Frost www.PoemHunter.com - The World's Poetry Archive ...

Words: 22239 - Pages: 89