Suppose that the risk-free rates in the United States and in the United Kingdom are 5% and 4%, respectively. The spot exchange rate between the dollar and the pound is $1.80/BP. What should the futures price of the pound for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs?

A) $1.62/BP
B) $1.72/BP
C) $1.82/BP
D) $1.92/BP

When musicians and their concert promoters offer CDs of a live concert immediately after the concert ends, what type of growth strategy are they pursuing?

Both collusive and noncollusive oligopoly models suggest that price changes will be relatively infrequent in these types of industries.

Calculate the cost of processing one sales order if the total activity cost is $1 720 000 p.a., the activity driver is the number of orders received and the annual quantity of the activity driver is
43 000 orders.

A) $20 per order.
B) $25 per order.
C) $40 per order.
D) $50 per order.

Durawash Laundry purchased $8000 worth of supplies on June 2 and recorded the purchase as an asset. On June 30 an inventory of the supplies indicated only $3000 on hand. The adjusting entry that should be made by the company on June 30 is

A) Debit Supplies Expense $3000; Credit Supplies $3000.
B) Debit Supplies $3000; Credit Supplies Expense $3000.
C) Debit Supplies $5000; Credit Supplies Expense $5000.
D) Debit Supplies Expense $5000; Credit Supplies $5000.

(Table: Willingness to Pay for Basketball Sneakers) The table Willingness to Pay for Basketball Sneakers shows each player's willingness to pay for basketball sneakers.Assume that each player wants to buy at most,one pair of sneakers.If the price of basketball sneakers is $99,how many pairs will be purchased?

A) one
B) two
C) three
D) four