For 1 pound I pay 1/0.6 = 1.67 dollars. Therefore for 3 pounds I pay 3*1.67 = 5 dollars. Thus, option A
If the exchange rate is 0.60 British pounds per $1, a bottle of pop that costs...
The current British pound exchange rate is 1.15 pounds per dollar. If British Inflation is expected to be 3 and US Inflation 4%, what is the indirect forward rate for the British pound 5 months from now? 0.95 1.04 0.86 1.26 1.15
QUESTION 24 Suppose the U.S. dollar-British pound exchange rate is quoted as USD2.00/GBP. This is a: direct quotation in Great Britain. indirect quotation in United States. direct quotation in the United States. direct quotation in Great Britain and an indirect quotation in the United States,
QUESTION 15 Suppose the U.S. dollar-British pound exchange rate is quoted as USD2.00/GBP. This is a: direct quotation in Great Britain. o indirect quotation in United States. direct quotation in the United States. O direct quotation in Great Britain and an indirect quotation in the United States.
1. In July 2019, the price of a Big Mac in Great Britain was 3.29 pounds. The exchange rate between the British pound and US dollar was 0.80 pounds/dollar. a. What would be the cost of a Big Mac in Great Britain in US dollars (convert the price in British pounds to US dollars)? b. The current cost of a Big Mac in the US is $5.74. If the law of one price holds for the Big Mac in the...
Question A the current exchange rate of $1.40 per British pound, a one-day pass to Worldwide Theme Park of 13 Florida sells for 45 pounds at travel agencies throughout Great Britain. If the exchange rate increases to $1.70 per pound, what will happen to the price of a one-day pass sold in Great Britain? Select one: O a. The price will be unchanged. O b. The price will fall to 37 pounds. O c. The price will increase to 54...
You can exchange $1 for either .9146 euro or .7249 British pounds. What is the cross-rate in terms of pounds per euro?
Question 31 The current British pound exchange rate is 1.45 pounds per dollar. Bishonis expected to be and Us on what is the direct forward rate for the besh pound & months from now 0 121 1.7 161
Boston Beanery, a U.S.-based company, establishes a branch in Great Britain in January of Year 1, when the exchange rate is US $ 1.30 per British pound (£). During Year 1, the British branch generates £ 5,000,000 of pretax income. On October 15, Year 1, £ 2,000,000 is repatriated to Boston Beanery and converted into U.S. dollars. Assume the effective income tax rate in Great Britain is 19 percent. Taxes were paid in Great Britain on December 31, Year 1....
Given that the spot rate is 1.5 euros per pound and the forward euro-pound exchange rate is 1.575 euros per pound calculate the forward premium discDunt on the British pound and indicate which of the two it is. Consider a Dutch investor with 1 000 euros to pace in a bank deposit in either the Netherlands or Great Britain. The one-year interest rate on bank deposits is 2% in Britain and 4.04% in the Netherlands. The one year forward euro-pound...
A desk costs $195 in the United States. The same desk costs 150 British pounds. If purchasing power parity holds perfectly, what is the exchange rate in dollars per pound?