Question

Suppose we have the following exchange rate quotes:

in US$ | per US$ | |

Euro area (€) | 1.3570 | .7369 |

Mexico (Ps) | .0781 | 12.8057 |

**a.** If you have $250, you can get euros.
**(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16. Use the €/$ exchange rate
in your calculation.)**

**b.** One euro is worth $ . **(Do
not round intermediate calculations and round your answer to 4
decimal places, e.g., 32.1616.)**

**c.** If you have 6,500,000 euros, you have
$ . **(Do not round intermediate calculations.
Enter your answer in dollars, not millions of dollars, e.g.,
1,234,567.** **Use the $/€ exchange rate in your
calculation.)**

**d.** You can get Mexican pesos for a
euro. This type of rate is called (Click to
select) foreign currency cross
rate exchange rate mixed rate .
**(Do not round intermediate calculations and round your
answer to 4 decimal places, e.g., 32.1616.)**

I need help with D.

Answer #1

Suppose we have the
following exchange rate quotes:
in US$
per US$
Euro area
(€)
1.3604
.7351
Mexico
(Ps)
.0781
12.8041
a. If you have $200, you can get euros.
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16. Use the €/$ exchange rate
in your calculation.)
b. One euro is worth $ . (Do not round
intermediate calculations and round your answer to 4 decimal
places, e.g., 32.1616.)
c....

You have the following market data.
Spot price for the Euro is $1.174 per Euro.
Three-month forward price is $1.06 per Euro.
U.S. dollar LIBOR for three months is a continously compounded
rate of 1.26% per annum.
Euro LIBOR for three months is a continuously compounded rate
of 3.98% per annum.
Underlying asset for this contract (i.e., the quantity of Euros
to be delivered in three months) is 100,000 Euros.
What is the total net profit if you execute the...

Suppose the Japanese yen exchange rate is ¥75 = $1, and the
British pound exchange rate is £1 = $1.54.
a. What is the cross-rate in terms of yen per pound? (Round your
answer to 2 decimal places, e.g., 32.16.)
Cross-rate ¥/£
b. Suppose the cross-rate is ¥120 = £1. What is the arbitrage
profit per dollar used? (Do not round intermediate calculations and
round your answer to 4 decimal places, e.g., 32.1616.)
Arbitrage profit $

4.Suppose that the exchange rate between the euro and US dollar
is 0.92 euro/dollar. The price index in the United States is 112
and the price index in Europe is 205. What is the real exchange
rate between euros and dollars?
Question 4 options:
0.50
1.83
1.68
0.55
0.92
5.Suppose that the exchange rate between the euro and US dollar is
0.92 euro/dollar. What is the exchange rate expressed in
dollars/euro?
Options:
0.92
0.73
1.02
1.80
1.09
Question 6 (1...

Suppose that the US dollar/ euro exchange rate is $2/ €. Use
this information to determine the following:
a)Price of a $50 U.S. sweater in Paris (in euros)
b)Price of a € 100 French shirt in New York (in dollars)
c) Provide an example exchange rate that would be a US dollar
appreciation vs. the euro
d)Suppose more Americans suddenly want to visit France. Would
tend to cause a US dollar depreciation or US dollar
appreciation?

Suppose the U.S. yield curve is flat at 5% and the euro yield
curve is flat at 4%. The current exchange rate is $1.25 per euro.
What will be the swap rate on an agreement to exchange currency
over a 3-year period? The swap will call for the exchange of 1.2
million euros for a given number of dollars in each year.
(Do not round intermediate calculations. Enter your answer
in millions rounded to 4 decimal places.)
Swap Rate _____...

Suppose that the euro exchange rate is $1.15/euro. The
continuously compounded dollar interest rate is at 3% and the
continuously compounded euro interest rate is at 2%. Suppose that
you borrow euros and lend dollars for 1 year, without using futures
for hedging, and your initial cash flow is zero.
(a) At what exchange rate in 1 year will you break even on this
position?
(b) If the exchange rate in 1 year is $1.20, what is your profit
(per...

Suppose your company imports computer motherboards from
Singapore. The exchange rate is currently 1.5130 S$/US$. You have
just placed an order for 31,000 motherboards at a cost to you of
230.80 Singapore dollars each. You will pay for the shipment when
it arrives in 90 days. You can sell the motherboards for $161
each.
a. Calculate your profit if the exchange rate falls by 11
percent over the next 90 days. (A negative answer should be
indicated by a minus...

Please answer all parts I submitted 10 times,
Suppose your company imports computer motherboards from
Singapore. The exchange rate is currently 1.5130 S$/US$. You have
just placed an order for 31,000 motherboards at a cost to you of
230.80 Singapore dollars each. You will pay for the shipment when
it arrives in 90 days. You can sell the motherboards for $161
each.
Calculate your profit if the exchange rates stay the same over the
next 90 days. (Do not round...

Suppose the dollar–euro exchange rate, E$/€, are as follows: in
New York, $1.2 per euro; and in Paris, $1.3 per
euro. Describe how investors use arbitrage to take
advantage of the difference in exchange rates. Will this
make euros appreciate or depreciate (against dollars) in Paris?
Will this make euros appreciate or depreciate (against dollars) in
New York? Under what conditions will the equilibrium be restored?
Explain.
Please show all work

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