(a) During the 1997 Asian financial crisis, the Thai baht was trading at $0.02475 per Thai baht. The Thai baht is trading at $0.03093 per Thai baht now. What is the percentage change in the Thai baht’s value? Would you consider it an appreciation or depreciation?

What is the likely frequency of the data (daily, monthly, yearly)? Compare to historical historical data in the picture to justify the answer.

Ef 06.

Peder Mueller-UIA (B). Peder Mueller is a foreign exchange trader for a bank in New York. Using the values and assumptions here,, he decides to seek the full 4.802% return available in U.S. dollars by not covering his forward dollar receipts an uncovered interest arbitrage (UIA) transaction. Assess this decision. The uncovered interest arbitrage (UIA) profit amount is Data table (Round to the nearest cent.) (Click on the following icon in order to copy its contents into a spreadsheet.) Arbitrage funds available USD1,000,000 Spot exchange rate (CHF = USD1.00) 1.2813 3-month forward rate (CHF = USD1.00) 1.2745 Expected spot rate in 3 months (CHF = USD1.00) 1.2699 U.S. dollar 3-month interest rate 4.802% Swiss franc 3-month interest rate 3.198% X

In 2018, the yen went from $0.00887619 to $0.00906626. • By how much did the yen appreciate against the dollar? • By how much has the dollar depreciated against the yen?

As the 2008–2009 financial crisis unfolded, one major U.S. bank had a leverage ratio of 50.In Canada, regulators put a ceiling of 20 on bank leverage ratios. Compare the change inasset values that would push the capital in the U.S. bank to zero with the change requiredto eliminate capital in a Canadian bank at the ceiling-leverage ratio. What is the implicationof the differences in maximum leverage ratios for the stability of the banking system?