Friday, July 5, 2013

Two Weeks Down

Today marks the second full week of classes and next Tuesday will be the third full week in New York. I can't believe that a week from tomorrow I will be on a plane ride home. 

Today was rather uneventful and nothing exciting was discussed in either of my classes. Well, of course interesting topics where discussed but there was nothing presented that is worth explaining here. Topics being discussed were much more technical such as further knowledge as to how a balance sheet works. Although in the morning lecture the professor presented the new term arbitrage. This term is a little complicated to explain; I'll do my best. Arbitrage is the buying and selling of the same commodity within different markets where they are different prices to even out the market for the specific commodity. For example, if gold is worth more in the US (there is a high demand with little of it) and not as high in England (there isn't as much of a demand), one might buy a large amount of gold in England and then sell it in the US. With the increase in the amount of gold in the US, prices will drop. With less gold in England, prices rise. In theory this should even out the market for gold for both economies. You buy where it's cheap and sell where it is expensive in order to even out prices.

The scariest part of my day was when Professor Mesznik was in the midst of explaining arbitrage.  He stared at me, looked me in the eyes and said, "Miss, I am going to ask you a question now." I sat there wide-eyed and fear stricken. He proceeded to give me the example of gold being more expensive in the US than  in England and asked, "Does this violate arbitrage?"
"And why not?"
"There must be a higher demand for gold in the US than in England."
At this point the adrenaline from the fear kicked in and I don't remember what is was that the professor said exactly. I'm pretty sure I got the answer right. There are 140 students in that lecture, many of which have previously studied in finance and economics, so it's a little intimidating to be called on.

That was the major event of my day. I spent the rest of the day relaxing and contemplating a topic for the short essay due Monday.  For this 400 word essay we have to write up a simple business plan or explain a business decision. Professor Mesznik presented the example as to why some restaurants will have packets of sugar or salt whereas others will have cup/container things that you can poor. I suppose only an economist would pose such a question. 

I can't believe that this whole amazing adventure/trip/experience is already more than half over. I feel like there is so much more to learn in the class and see and do in New York. Tomorrow I'm going to the MOMA and then to see Cinderella so those are two things I can cross off of my New York City to-do bucket list.

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