APPLICATIONS+INVESTIGATIONS IN EARTH
APPLICATIONS+INVESTIGATIONS IN EARTH
18th Edition
ISBN: 9781533902405
Author: Tarbuck
Publisher: Hayden-McNeil Publishing
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Chapter 20.1B, Problem 1A
Summary Introduction

The constellation in which the planets Mercury, Venus, Mars can be seen from Earth on May 1, 2019.

Introduction:

When a planet is found to be present in a constellation, it means that the given constellation lies directly behind the said planet when observed from the Earth.

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Suppose that today is 13 August 2019 and the current exchange rate is HKD 6.20 per AUD 1.00. The figure below shows your prediction with respect to the HKD's movements relative to the AUD between now and mid-September 2019. HKD per AUD 7.2 6.8 6.4 6.0 13/08 18/08 23/08 28/08 2/09 7/09 12/09 today Note: HKD = Hong Kong Dollar; AUD = Australian Dollar. %3D %3D You intend to capitalize on your prediction by using the 15/9/2019-maturity forward contract, which is currently priced at HKD 6.00 per AUD 1.00. Which of the following are you most likely to undertake today to capitalize on your prediction? (Select the best answer.) O a. Long forward contract to buy AUD O b. Short forward contract to sell AUD O C. Long forward contract to sell HKD O d. Either (a) or (c) will work
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