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PROBLEM 3 RNATİONALEİNANCİALMANAGEMENT (16 POINTS) PART1 PURCHASING POWER THEORY (8POINTS) From the base price level of 100 i
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Answer #1
1) Inflation rate in Saudi Arabia = 250/100-1 = 150.00%
2) Inflation rate in US = 100/100-1 = 0.00%
3) Exchange rate in 2010 = 0.46*(1+0)/(1+1.5) = 0.184 $/riyal
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PROBLEM 3 RNATİONALEİNANCİALMANAGEMENT (16 POINTS) PART1 PURCHASING POWER THEORY (8POINTS) From the base price level of 100 in 1981, Saudi Arabla and US price levels in 2010 stood at 250 and 100,...
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