{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T02:13:04-04:00", "answer_date": "2024-06-06 02:13:04", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2333937", "url": "\/study-help\/questions\/4-the-old-lady-was-absolutely-afraid-of-the-economic-2333937", "question_creation_date_js": "2024-06-06T02:13:04-04:00", "question_creation_date": "Jun 06, 2024 02:13 AM", "meta_title": "[Solved] 4. The old lady was absolutely afraid of | SolutionInn", "meta_description": "Answer of - 4. The old lady was absolutely afraid of the economic situation, she wanted to make sure that her money would be safe, | SolutionInn", "meta_keywords": "4,old,lady,absolutely,afraid,economic,situation,wanted,make,money,safe,speak", "question_title_h1": "4. The old lady was absolutely afraid of the economic situation, she wanted to make sure that her money would be safe, so, she went", "question_title": "4. The old lady was absolutely afraid of the economic situation, she", "question_title_for_js_snippet": "4 The old lady was absolutely afraid of the economic situation, she wanted to make sure that her money would be safe, so, she went to speak with a broker The broker expressed understanding and explained the following We will invest part of your money in futures contracts for Euros, it is an absolutely safe instrument where you pick the settlement price and you know how much you will get for the Euro and you do not lose a penny You have to post margin but do not worry, you can always walk out of the contract if you want Now, we can also enter into a Foreign Exchange swap, where the constant stream of cash you will receive over the years will keep your money safe Furthermore, we can calculate the value of the swap in such a way that you always receive more than you pay Last, said the broker, almost jumping for joy, almost nobody uses FX swaps, and there are very good reasons for this, hence we will not use them either The old lady looked at the broker, did not say a word, and went away muttering curses against the ignorance of some brokers Was she right", "question_description": "\"image

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\"image<\/div><\/div><\/div> 4. The old lady was absolutely afraid of the economic situation, she wanted to make sure that her money would be safe, so, she went to speak with a broker. The broker expressed understanding and explained the following: We will invest part of your money in futures contracts for Euros, it is an absolutely safe instrument where you pick the settlement price and you know how much you will get for the Euro and you do not lose a penny. You have to post margin but do not worry, you can always walk out of the contract if you want. Now, we can also enter into a Foreign Exchange swap, where the constant stream of cash you will receive over the years will keep your money safe. Furthermore, we can calculate the value of the swap in such a way that you always receive more than you pay. Last, said the broker, almost jumping for joy, almost nobody uses FX swaps, and there are very good reasons for this, hence. . .we will not use them either. The old lady looked at the broker, did not say a word, and went away muttering curses against the ignorance of some brokers. Was she right", "transcribed_text": "", "related_book": { "title": "Financial and Managerial Accounting the basis for business decisions\t ", "isbn": "0077664078, 978-0077664077, 78111048, 978-0078111044", "edition": "16th edition", "authors": "Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/290.jpg", "uri": "\/textbooks\/financial-and-managerial-accounting-the-basis-for-business-decisions-16th-edition-290", "see_more_uri": "" }, "free_related_book": { "isbn": "080241270X", "uri": "\/textbooks\/the-5-love-languages-the-secret-to-love-that-lasts-1st-edition-978-0802412706-314588", "name": "The 5 Love Languages The Secret To Love That Lasts", "edition": "1st Edition" }, "question_posted": "2024-06-06 02:13:04", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/p-company-holds-an-80-interest-in-sfr-company-a", "description": "P Company holds an 80% interest in SFr Company, a Swiss company. 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