Question
A friend asks to borrow $52 from you and in return will pay you $52 in one year. If your bank is offering a 5.9%
A friend asks to borrow $52 from you and in return will pay you $52 in one year. If your bank is offering a 5.9% interest rate on deposits and loans: A. How much would you have in one year if you deposited the $49 instead? B. How much money could you borrow today if you pay the bank $52 in one year? C. Should you loan the money to your friend or deposit it in the bank?
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
5th Edition
0131445650, 9780131445659
