that the price of a product in Canada is $150 and in US is $180. If the cost of transporting the product is $15, then:   a. it is possible to engage in arbitrage. b. it is not possible to engage in arbitrage. c. it is inconclusive whether arbitrage is pos

7. XYZ, a US company has a subsidiary in Korea. The Korean sub sells inventory to a Japanese company with the sale denominated in US dollars. Between the date of sale and the date the receivable is collected the Korean won strengthens 10% against the US dollar. Explain if there is a foreign exchange gain or loss or no FX impact and why   Thank you

Question 3 Consider the following information. 1. On September 1, 2022, a US firm contracts to buy equipment with an asking price of £100,000 from a firm in the U.K. The firm will take delivery and will pay for the equipment on March 1, 2023. 2. On that same day, September 1, 2022, the US firm enters into a forward contract to buy £100,000 for US$1.60/£ on March 1, 2023. 3. Spot rates and forward rates were quoted as follows: Spot Rate $1.59/£ $1.55/£ March 1, 2023 $1.57/£ On March 1, 2022, the payment of £100,000 was made to the supplier of the equipment. 4. September 1, 2022 September 30, 2022 Forward Rate $1.60/£ $1.53/£ Required: a. Prepare the journal entries needed for the forward contract transaction done on September 1, 2022. b. Prepare the journal entries needed for the transactions to track the forward contract on September 30, 2022, the financial year-end of the US firm. c. Prepare the transactions for the recognition of the actual purchase of the equipment and settlement of…