Spot exchange rate-what do you predict the exchange rate

Assignment Help Financial Management
Reference no: EM131348577

Suppose the spot exchange rate for the Hungarian forint is HUF 205.06. The inflation rate in the United States will be 2.2 percent per year. It will be 5.2 percent in Hungary.

What do you predict the exchange rate will be in one year? (Round your answer to 2 decimal places, e.g., 32.16.)

Exchange rate    HUF/$   

What do you predict the exchange rate will be in two years? (Round your answer to 2 decimal places, e.g., 32.16.)

Exchange rate    HUF/$   

What do you predict the exchange rate will be in five years? (Round your answer to 2 decimal places, e.g., 32.16.)

Exchange rate    HUF/$

Reference no: EM131348577

Questions Cloud

Level of government involvement : (Part A) Evaluate the fundamental arguments between Keynesians and Monetarists concerning the level of government involvement in our economy to minimize the impact and stabilize the different stages of the business cycle.
What will be new portfolio beta : You have a portfolio with a beta of 1.78. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.71?
Unreliable indicator of the standard of living : Question 1: Explain why real GDP might be an unreliable indicator of the standard of living. Question 2: Why does unemployment arise and what makes some unemployment unavoidable?
Current stock price-what is its required return : Suppose Paccar’s current stock price is $108.26 and it is likely to pay a $3.06 dividend next year. Since analysts estimate Paccar will have an 5.6 percent growth rate, what is its required return?
Spot exchange rate-what do you predict the exchange rate : Suppose the spot exchange rate for the Hungarian forint is HUF 205.06. The inflation rate in the United States will be 2.2 percent per year. It will be 5.2 percent in Hungary. What do you predict the exchange rate will be in one year?
Identify the single most important economic principle : Thinking back on what you have learned in this course, identify the single most important economic principle learned and explain why it was more significant than any other principle or concept.
Influence the demand for product : Pick a product or service you use in your everyday life and describe the market for this product. For this paper we will use the UBER driving service. Please make sure to address the following questions: 1. What factors influence the demand for ..
Plot the rankine cycle thermal efficiency : Plot the Rankine cycle thermal efficiency vs. boiler pressure over the boiler pressure range from 1.00 to 20.0 MPa. Ignore the power required by the boiler feed pump.
Determine mass flow rate of steam extracted from turbine : Determine the mass flow rate of steam extracted from the turbine.- The system's isentropic Rankine cycle thermal efficiency.

Reviews

Write a Review

Financial Management Questions & Answers

  Bank account to cover college expenses

Beginning three months from now, you want to be able to withdraw $1,700 each quarter from your bank account to cover college expenses over the next four years. If the account pays .39 percent interest per quarter, how much do you need to have in your..

  What will be cost to homeland of the dvd recorder

Once free-trade area is formed, what will be cost to Homeland of the DVD recorder trade diverted to Furrinerland? - How much extra imports would have to be demanded by Homeland to offset this trade-diversion cost?

  Identify the breakeven stock prices at expiration

Construct a long straddle using the October 165 options. Hold until the options expire. Determine the profits and graph the results. Identify the breakeven stock prices at expiration and the minimum profit.

  The after-tax cashflows generated by the two-year

Cnooc, a Chinese public-sector company, has made a bid to purchase Unocal, a big U.S oil company, for $18.5 billion in June 2005. Treat this as an initial investment made by Cnooc in this two-year, U.S based project. If the after-tax cashflows genera..

  How sensitive is OCF to changes in quantity sold

Consider a four-year project with the following information: initial fixed asset investment = $450,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26; variable costs = $16; fixed costs = $140,000; quantit..

  Purchased zero coupon bond-market interest rate

You purchased a zero coupon bond one year ago for $171.56. The market interest rate is now 9 percent. If the bond had 20 years to maturity when you originally purchased it, what was your total return for the past year? Assume semiannual compounding.

  How should depreciation of a firms home currency affect

Currency effects on cash flows. How should appreciation of a firm's home currency generally affect its cash inflows? How should depreciation of a firm's home currency generally affect its cash outflows?

  What is the importance of different interest rate forecasts

List the basic steps in DGAP analysis. What is the importance of different interest rate forecasts?

  Calculate value of three-month european put futures option

Calculate the value of a three-month European put futures option when the futures price is $18, the strike price is $20, the risk-free interest rate is 10% per annum, and the volatility of the futures price is 30% per annum.

  The warehouse is debt-free

Wexter's purchased a warehouse for $499,000 six years ago. Four years ago, repairs costing $132,000 were made to the building. The annual property taxes are $41,000. The warehouse has a current book value of $268,000 and a market value of $529,000. T..

  Explain what is the financial break-even point

The machine costs $575,000. The sales price per pair of shoes is $60, while the variable cost is $14. $165,000 of fixed costs per year are attributed to the machine. Assume that the corporate tax rate is 34 percent and the appropriate discount rat..

  What is the company cost of preferred stock

Tunney Industries can issue perpetual preferred stock at a price of $56.00 a share. The stock would pay a constant annual dividend of $5.50 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd