What will the exchange rate be next year

Assignment Help Finance Basics

Reference no: EM133377498

Question 1

You visited Switzerland over summer and brought back 4,259.46 swiss francs to the United States. How many U.S. dollars will you get if you exchange your swiss francs for U.S. dollars? The exchange rate is 1 U.S dollar = 1.0497 swiss francs.

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 2

You just returned from a trip to Netherlands and have 4,179 euros in your pocket. How many dollars will you receive when you exchange this money if the U.S. dollar equivalent of the euro is 0.75?

Enter your answer rounded off to two decimal points. Do not enter any currency in the answer box.

Question 3

Given

USD/Brazilian Real = 3.953

USD/Australian Dollar = 1.02

USD/Chinese Yuan = 9.321

What is the Australian Dollar/Chinese Yuan cross rate?

Enter your answer rounded off to THREE decimal points.

Question 4

Given

USD/Brazilian Real = 3.109

USD/Australian Dollar = 1.424

USD/Chinese Yuan = 7.069

What is the Australian Dollar/Brazilian Real cross rate?

Enter your answer rounded off to THREE decimal points.

Question 5

Suppose you have the following information:
1 GBP = 1.162 USD
1 USD = 1.109 CAD
What is the GBP/CAD cross rate?

Enter your answer rounded off to FOUR decimal points. Do not enter any currency sign in the answer box.

Question 6

In New York, you can exchange $1 for €0.7197 or £0.6003. Suppose that, in Berlin, £1 costs €1.1774. How much profit can you earn on $42,511 using triangle arbitrage?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 7

Assume the current spot rate between the UK and the U.S. is £0.817 per $1, the expected inflation rate in the U.S. is 2.82 percent, and the expected inflation rate in the UK is 4.15 percent. If relative purchasing power parity exists, what will the exchange rate be 3 years from now?

Enter your answer rounded off to FOUR decimal points. Do not enter any currency symbol in th answer box.

Question 8

Assume the current spot rate between the UK and the U.S. is £0.65 per $1, the expected inflation rate in the U.S. is 2.4 percent, and the expected inflation rate in the UK is 3.83 percent. If relative purchasing power parity exists, what will the exchange rate be next year?

Enter your answer rounded off to FOUR decimal points. Do not enter any currency symbol in th answer box.

Reference no: EM133377498

Questions Cloud

Why do you think this inefficiency persisted : Why do you think this inefficiency persisted? In other words, if this mis-valuation was obvious to ESL, why do you think it was not obvious to investors in gene

Discuss the multiple functions related to the health : Please discuss, in detail, the multiple functions related to the health and well-being of the students, including those receiving disability services.

What could the north american workforce offer that might : Read the Case Incident "Apple Goes Global" on page 31. Assume you are a member of the leadership team for a small to medium-sized manufacturing firm

What are your recommendations to the board to correct : Based on the limited amount of information provided in the case, what are your recommendations to the board to correct any weaknesses noted

What will the exchange rate be next year : If relative purchasing power parity exists, what will the exchange rate be next year - Enter your answer rounded off to FOUR decimal points

What style do you think that reed prefers : Describe Sarah's current Followership style. What style do you think that Reed prefers . What course of action would you recommend that Sarah follow regarding

Discuss the nature-nurture debate : Consider the nature-nurture debate. (Make sure that you read about this issue in the text and Lecture Notes. Watch the video that is posted below.)

What is the brazilian real/chinese yuan cross rate : What is the Brazilian Real/Chinese Yuan cross rate? Enter your answer rounded off to THREE decimal points.

Should have supporting evidence and research to back up : Should have supporting evidence and research to back up the feedback/insight submitted and demonstrate knowledge and familiarity with the discussion industry

User Account

All Pages