Homework Answers
Direct Quote: One unit of Foreign currency in terms of Home currency
Indirect Quote: One unit of Home currency in terms of Foreign currency
a)
Therefore, Spot Direct Quote = Switzerland Franc 1.0787/$
b)
Therefore, Spot Indirect Quote = $0.9270/Switzerland Franc
c)
More $ are required after 6 months to Buy 1 Swiss Franc. Therefore, It is trading at a PREMIUM.
Premium % = (Forward Rate-Spot Rate)/Spot Rate = (1.0811-1.0787)/1.0787 = 0.00222 = 0.222%
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Use the following table to
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Calculate the spot Korean won-Japanese yen exchange rate in W/¥.
(Korean won = W; Japanese yen = ¥)
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(Taiwanese dollar = T$;...
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Use the following table to
complete assignment
Suppose that on March 1 of the current year, the peso-US$
exchange rate was P5/$. On March 31 of the current year, the
exchange rate stood at P8/$. Calculate the 1-month percent change
in the value of the Mexican peso (= P).
Calculate the spot Korean won-Japanese yen exchange rate in W/¥.
(Korean won = W; Japanese yen = ¥)
Calculate the spot Taiwanese dollar-euro exchange rate in T$/€.
(Taiwanese dollar = T$;...
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