10) d
1/0.6590
11) c
0.6590
12) a
0.6590 increases to 0.6598
so 1/0.6590 decreases
thus , dollar depreciated against the franc
13) c
Table 11.4. Forward Exchange Rates Switzerland (Franc) 30-day Forward 90-day Forward 180-day Forward U.S. Dollar Equivalent...
QUESTION 25 Let the U.S. dollar-yen spot rate be ¥120/$. Also, let the 180-day forward exchange rate be ¥124.8/$. Then the yen is selling at a per annum _________ of ___________. a. premium; 8.00% b. premium; 6.30% c. discount; 8.00% d. discount; 1.57% QUESTION 26 Assume that a green card holder flies with American Airlines from NYC to Paris. The related transactions will be reported on the Balance of Payments. True False
A) You are given the following exchange rates: SF in NY: $1.1259-71 $ in Zurich: SF0.8861-68 What is the percent spread for SF in NY? a. 0.1060% b. 0.1065% c. 0.0789% d. 0.0790% B) As at 27 December 2012, the exchange rate between Euro and US dollar is 0.75 € per US$. Exchange rate between US$ and Swiss Franc is 1.09 US$ per Swiss Franc. Find the exchange rate between € and Swiss Franc. a. €0.8175/SF b. €1.4533/SF c. SF0.6881/€...
The current U.S. dollar-yen spot rate is 125.00\%/\$ . If the 90-day forward exchange rate is 127.60\%/\$ then the yen is selling at a per annum ___of_
Look at the exchange rates in Table 22-1. Does the Swiss franc sell at a lorward premium or discount on the dollar? Does this suggest that the interest rate in Switzer land is higher or lower than in the United States? Use the interest rate parity relation- ship to estimate the 1-year interest rate in Switzerland. Assume the U.S. interest rate is 4.1% Forward Rate 3 Months 1 Year Quotation Spot Rate 1 Month 1 Spolond hange rates for 1.2007...