My Homework Help logo
  • Our services
    • Math homework Help
    • Excel Homework Help
    • Case Study Assignment Help | Do My Case Study Homework
    • PowerPoint Presentation Help
    • CIPD Assignment Help
    • Civil Engineering Homework Help – Do My Asssignment For Me
    • CPM Homework Help | Do My CPM Assignment For Me
    • Discussion Board Homework Help
    • Finance Homework Help – Do My Finance Assignment For Me
    • Nursing Homework Help
    • Programming Homework Help
    • SPSS Homework Help | Do My SPSS Assignment For Me Cheap
    • Statistics Homework Help
  • About Us
  • How It Works
  • My account
  • Order now
Order Now
Homework Help

Keep the funds at your bank in the United States and buy a forward contract to pay for the car. Buy a certain currency amount spot today and invest the amount in the foreign bank for three months so that the maturity value becomes equal to the price of the car.Analyze the two alternatives presented and make a recommendation on purchasing the car. How could this purchase opportunity be considered arbitrage? What are the advantages of the alternative that you have selected?

1 min read
Posted on 
May 25th, 2023
Home Homework Help Keep the funds at your bank in the United States and buy a forward contract to pay for the car. Buy a certain currency amount spot today and invest the amount in the foreign bank for three months so that the maturity value becomes equal to the price of the car.Analyze the two alternatives presented and make a recommendation on purchasing the car. How could this purchase opportunity be considered arbitrage? What are the advantages of the alternative that you have selected?
Two options for buying the car are to buy a forward contract or invest in a bank abroad. The forward contract involves entering an agreement with the bank that you will pay the agreed amount at a future date. Investing in a foreign bank requires depositing money for three months to ensure the maturity is the same as the cost of the vehicle. It is recommended that you purchase a contract after careful consideration. This method offers several benefits.

Firstly, the strategy removes all exchange rate risks since the buyer can fix their price by entering into agreements of this type. Having already locked in their price, the buyer will be able to access it instantly after completion. This is a great convenience. By utilizing these contracts, buyers can also realize arbitrage profits by taking advantage.

The flexibility of forward contracts and their ability to offer certainty about pricing are two reasons why they can be beneficial when purchasing large items such as automobiles.

Order an Essay Now & Get These Homework Help Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order
Share
Tweet
Share
Tweet
Calculate the price
Pages (275 words)
$0.00
My Homework Help
Company
  • Get Homework Help
  • Home
  • About Us
  • How It Works
Legal
  • About
  • How It Works
How Our Homework Help and Essay Service:
My Homework Help The essays written at My Homework Help are not intended to be forwarded as finalized work, but they can still serve a dual purpose of research and study. My Homework Help does not endorse or encourage any form of plagiarism.
Subscribe
No Spam
  • Math homework Help
  • Excel Homework Help
  • Case Study Assignment Help | Do My Case Study Homework
  • PowerPoint Presentation Help
  • CIPD Assignment Help
  • Civil Engineering Homework Help – Do My Asssignment For Me
  • CPM Homework Help | Do My CPM Assignment For Me
  • Discussion Board Homework Help
  • Finance Homework Help – Do My Finance Assignment For Me
  • Nursing Homework Help
  • Programming Homework Help
  • SPSS Homework Help | Do My SPSS Assignment For Me Cheap
  • Statistics Homework Help
© 2025 My Homework Help. All rights reserved.
My Homework Help will be listed as ‘My Homework Help’ on your bank statement.

WhatsApp us