Assume you want to determine whether the monthly movements in the Polish zloty against the dollar are more volatile than the monthly movements in some other currencies against the dollar. The zloty was valued at $0.5102 on May 1, $0.5209 on June 1, $0.5888 on July 1, $0.5406 on August 1, and $0.5260 on September 1. Compute the standard deviation (a measure of volatility) of the zloty's monthly exchange rate movements. O 6.21% O 9.02% O 1.06% O 1.76% O None of the above is correct.

A Chinese investor invests in U.S. Treasury bills. If the Chinese renminbi (RMB) appreciates during the holding period against the U.S. dollar (USD), this investment   increases in value but default risk remains unchanged. declines in value and decreases in default risk. declines in value but default risk remains unchanged. increases in value and decreases in default risk.

Q1-10 If a PPP estimate of the dollar/pound exchange rate is $1.61/£ and the current spot rate is observed to be $1.68/£, on the basis of these two rates you should, viewing the long-run,   a. expect the dollar to appreciate against the pound. b. take a "short" position in dollars. c. expect the pound to appreciate against the dollar. d. have no expectation regarding the likely movement of the dollar/pound exchange rate.

Consider the following information: Rate of Return Probability of State State of if State Economy Recession of Economy .25 Occurs -.09 Normal .45 11 Вoom .30 .30 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %

Suppose that a commercial bank's current quote for transactions involving the United States dollar is A$1.3214 A$1.3298. (a) State the ask and bid prices for the bank. (b) Calculate the bid/ask spread for the bank.

Suppose Dassie Bank quoted the exchange rate of Singapore dollar in US$ at $0.60, the pound rate in US$ at $1.50, and the pound rate in Singapore dollars at S$2.6.  As a result of triangular arbitrages among the three currencies and its supply/demand effects, the quoted rate of Singapore dollars in US$ tends to _____. a. depreciate b. remain the same c. appreciate