3) Imagine that you can borrow or lend at a risk-free rate of 3.20% in the US, and you can borrow or lend at a risk-free rate of 4.55% in Europe. You have $500,000 to invest for one-year. The exchange rate is: 1.0000 USD = 0.9372 EUR. a. Is there a covered interest arbitrage opportunity? If so, how much (in USD) can you profit? b. c. Explain what you would do to exploit a mispricing. d. What would the one-year futures contract FX rate have to be (approximate out to 4

27. Are the following statements true or false, according to IAS1 Presentation of Financial Statements? I. Provisions should be recognized in the statement of financial position. II. A revaluation surplus on non-current assets should be recognized in profit or loss.     a. True, True b. False, True c. True, False d. False, False

13. Fees for managing and protecting a customer"s property is considered under category interest income O non interest income O interest expense non interest expense

4. What is the specific citation that describes the disclosure requirements in the notes to the financial statementsfor exit or disposal obligations?