What is the premium and discount of euro against

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Reference no: EM131927221

1. If Euro has an exchange rate of IEuro-$1.47 today and we are expecting an exchange rate of IEuro-$1.52 in three months, what is the premium/discount of Euro against $ (annual in % term)? What is the premium/discount of $ against Euro (annual in % term)?

2. Suppose you travel to China and find that a pair of NIKE AIR sneakers is selling at ¥560 (RMB) there. You know that the same style sneakers are selling in US, for $70. Based on purchasing power parity, what would the implied ¥/$ exchange rate be?

Reference no: EM131927221

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