A U.S. consumer observes that a golf club costs $200. Currently in the spot market, 1 eurocan be exchanged for $1.1924. If purchasing power parity (PPP) holds, how many eurosshould you expect to pay for the same golf club in Europe?

If one U.S. dollar buys 0.6 euro, hoe many dollars can you purchase for one euro?

The 6-month interest rate in the US is 12.25% p.a. The 6-month interest rate in Canada is 15.25% p.a. The spot rate is US$0.8203/Canadian$ and the 6-month forward rate is US$0.8113/Canadian$. For a transaction size of US$700,000, how can an investor take advantage of the situation without taking undue risks? Ignore transaction costs and income taxes

Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client a choice of paying either $11,000 or SF16,500 in three months. Required: Baltimore Machinery effectively gave the Swiss client a free option to buy up to $11,000 using Swiss francs. What is the "implied" exercise exchange rate? Note: Round your answer to 4 decimal places. Implied exercise rate

Let’s suppose you (USA dealer) imported one Earth Equipment machine from German dealer on March 1, 2017 at € 300,000 each, payable in 30 days. The exchange rate on March 1, 2017 was 1.16 US$/€. Then you sold the machine in the US market at US$350,000 in cash on March 29, 2017. On April 1, 2017, you paid to Italian car dealer at the exchange rate of 1.19 US$/€. What was profit or loss from this business in terms of US$? (Please assume all costs are included in price.) A)-4500 B)-9200 C)-10200 D)-7000

In New York, you can exchange $1 for €0.8355 or £0.6006. Suppose that, in Berlin, £1 costs €1.1722. How much profit can you earn on $28,394 using triangle arbitrage?

how to solve this?

On January 31, 2019 the exchange rate between the US dollar and the euro was 1.14 USD/EUR. At the end of 2014, it was at 1.23 USD/EUR. a) Calculate the percentage change in the exchange rate. b) A shirt costs USD 40 in the US. How high can the price in Germany be, so that it is worth buying the shirt in Germany?

Sing Tao wants to import goods for 2.54 million Australian dollar (A$) and pay to Australian exporter, WA Co., in one year. Sing Tao also wants to minimise its exchange rate risk for the payment of A$2.54 million by taking the forward market hedging strategy. Calculate the Chinese yuan (CNY) costs using the forward market hedging strategy based on the information in Table 1. (Enter the whole number without sign and symbol).

In the spot market, 17.6 Mexican pesos can be exchangedfor 1 U.S. dollar. A compact disc costs $15 in the United States. If purchasing power parity(PPP) holds, what should be the price of the same disc in Mexico?