Given the following data R=$1.00N100 F $1.00N90 lus5% If the interest parity ocondition is expected to hold, interest rates in Japan (pan) should equal% (enter your answer as a percentage rounded to two
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- Given the following data: R = $1.00¥115 %D F = $1.00¥140 ius. = 8% U.S. If the interest parity condition is expected to hold, interest rates in Japan (i lapan) should equal % (enter your answer as a percentage rounded to two decimal places). Given the following data: E, = ¥110 = $1.00 E41 = ¥140 = $1.00 {one year later} %3D İJapan = 5% annually İu.s. = 6% annually Calculate the future value of a $1,000 investment. If the $1000 is invested in the U.S., the future value is $ (Round your response to two decimal places.)Given the following data: R = $1.00/110 F = $1.00/Y95 ¡u.s. = 5% If the interest parity condition is expected to hold, interest rates in Japan (Japan) should equal % (enter your answer as a percentage rounded to two decimal places).Suppose S(NZD/USD) = 1.5000 and S(MYR/USD) = 4.4000. What is the cross rate S(MYR/NZD)? Choose the closest answer to your own calculations. a. 2.9333 b. 0.3409 c. 6.6000 d. 0.1515
- Suppose that investors are risk-neutral and the linear UIP equation holds. You are given the following information: UK interest rate: i = 0.07 US interest rate: i* = 0.02 Expected future spot rate e^e = 8. What is the current spot rate, e? (State your answer as a number to 2 decimal places. Exchange rates are Pounds per Dollar, in natural logs)2. Complete the following table specifying the under and over valuation for each set of currencies. Show all your procedure for each answer: Real E.R. Theoretical E.R. % of % of Undervaluation Overvaluation (specify currency) (specify currency) USD 1.14 / EUR USD 1.52 / Punt TRY 4.85 / USD MXP 17.90 / USD USD 0.012 / JPY ¥ GBP {0.629 / USD USD 1.70 /EUR USD 1.50 / Punt TRY 4.73 / USD MXP 18.15 / USD USD 0.019/ JPY ¥ GBP (0.613/USDSolve all questions , otherwise I will give you downvote CIP stands for covered interest parity. Solve for blank. According to CIP, 1. if i_$=5%, i_yen=10%, current exchange rate is 100 yen/$, then forward exchange rate would be ____ yen/$. 2. if i_$=5%, i_yen=10%, forward exchange rate is 100 yen/$, then current exchange rate is ____ yen/$. 3. if i_$=5%, current exchange rate is 110 yen/$, forward exchange rate is 100 yen/$, then i_yen= ____ %. (if your answer is 8%, you can put 8 in the blank, not 0.08). 4. US interest rate is i_$=20%. An investor is indifferent between putting $ savings in US saving account, or converting their $ savings into euro, buy a DaVinci painting, hold on to the Painting for one year, sell it at the end of the year for euro, and convert euro back to $. If the painting is expected to appreciate 15% over the next year, then euro is expected to appreciate ____% relative to $ over the same year.
- Let in and if represent the nominal 1-year interest rates for a home and foreign country, respectively. According to the international Fisher effect (IFE) theory, which of the following best represents the predicted change in the foreign currency ef? O ○ ef = ef = 1-in 1-i 1+if 1+i - - 1 1 ○ ef 1+in ○ ef = +1 1+i ○ ef = 1+in 1+if - 1assuming japan to be the home country, suppose you have the following data: Japanese interst rate=1% p.a., Brazilian interest rate = 10% p.a. Spot rate=0.025BRL/Yen, 1 year forward rate=0.026BRL/yen 1). Compute the annualized forward premium/discount on Yen b). Compute the annual interest rate differential between countries c). is tere a possibilit for earning risk-free profit? if soc compute the profit if you have an equivalent of 100 million Yen at your disposal. d). what is such a profit called? e). at what forward rate, the profit making arrangement will lose its lucrativeness?Required: Based on the following formula and the expression for inflation rate, calculate the H DE HIF EHIF = PH-PF π F= 3% EH/F=0.7341 EHF=0.7361 country. T denotes the growth rate in price level (inflation). Note: H- Home country; F - Foreign
- You are given that the annual Australian dollar interest rate is 1% and the United States annual interest rate is 2.5%. The spot rate for the United States dollar is SA1.20. (a) Using interest rate parity, calculate the forward rate premium of the United States dollar with respect to the Australian dollar. (b) Using your answer to (a), calculate the onc-ycar forward rateIf the spot rateis NZ$0.50 $and the forward rate is NZ$0.55/8.The shot exchange raterate and the forwardor C$1.031$ and c$1.07/8.rateCompute the percentage change in the NZ$/C$ during this period.What will be forward rate if the current spot rate is €1= $1.40 and the risk-free rate in America and Europe is 5% and 4.30% respectively. A. $1.3907 B. $1.4520 C. $2.2220 D. $1.6253