GuptaShashankhw5 - Operations Management(33:623:386 Fall...

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Activity A B C B D A E A F A G B H B I E J E K F L H M Task A Cost $ 2 Operations Management (33:623:386) Fall 2010 Assignment 5 Due: Monday, November 1 by 11 pm Q1. Currency Investments Inc. is an investment company specializing in currency trade. Their main business is to find arbitrage opportunities , that is a circumstance where you start with a currency, say US dollar, and after a number of conversions to other currencies, you get back to US dollars amount larger than what you started with. This situation happens often temporarily, and is due to various reasons, such as governments intervention to devalue or revalue their national currencies, or due to exceptionally bad news or good news, that increase or decrease the value of currencies against others. Suppose Currency Investments has deals with certain banks in New York (US Dollar), Frankfurt (Euro), London (Pound), Zurich (Swiss Franc), Tokyo (Yen), Shanghai (Yuan), Mumbai (Rupee) and Moscow (Roubles). Through these banks, the company can get the most favorable exchange rates, with minimal fees and taxes. The transactions available to the company are listed in the worksheet called Q1. Thus, only these transactions have special favorable rates, all others are available only through regular rates, and the company does not consider them to be profitable (Thus, for instance, dollar to pound is not available at favorable rates for this company and they do not use it).
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This note was uploaded on 01/30/2011 for the course 623 386 taught by Professor Staff during the Fall '08 term at Rutgers.

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GuptaShashankhw5 - Operations Management(33:623:386 Fall...

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