If you know that the KD dinar has fallen by 10% against the Saudi Riyal, by how much the Saudi Riyal has appreciated against the KD Dinar? Given that one Kuwaiti Dinar (KD) equals 3.3 US$ while one Australian Dollar (AD) = 0.22 KD, what is the AD / US$. Note: use of chat gpt or any other ai bot is strictly prohibited.

Suppose that a U.S. company wishes to purchase goods from a German producer. The U.S. firm agrees to take the delivery of the goods in three months and to pay €1 million Euros at that time. This company wishes to avoid this exchange rate risk by buying Euros at the 3-month forward rate, f = 0.95 (€/$). Then, how much this company would have to pay in US dollars in exchange for €1 million Euros? a. $1 million dollars. b. $1,052,632 dollars. c. $950,000 dollars.

Purchasing-power parity (PPP) theory states that exchange rates would need to equalize the prices of goods in any two countries. For the dollar price Activity Frame o be the same in both countries, a U.S. citizen would need to be able to convert $5.74 into exactly GBP 3.29. To find the exchange rate at which hamburger purchasing power is the same in both countries, divide the price in the United States by the price in the United Kingdom: PPP Exchange Rate (U.S. Dollars per British pound) = $5.74 GBP 3.29 = $1.74 per pound The exchange rate that would have equalized the dollar price of a Big Mac in the United States and the Euro area (that is, the PPP exchange rate for Big Macs) is . This change would mean that the euro had against the dollar. If Big Macs were a durable good that could be costlessly transported between countries, which of the following would present an arbitrage opportunity? Check all that apply. Exporting Big Macs from the Euro area to the United States Exporting Big…

Determine for each, whether the interest parity condition holds or not, if Ese = 1.10 Interest Rate for the Dollar R$ 0.07 0.08 0.09 0.1 0.12 Page 9 of 11 Interest Rate for the Euro Re 0.02 0.08 0.04 0 0.04 Expected Rate of Dollar Depreciation Against Euro (Ese-Este)/Ese 0.11 0.16 0.05 0.11 0.16 Interest Parity Condition Holds? (YES/NO)

Assume an American firm takes a long position on British Pound call options. The premium is $0.05, and the strike price is $1.45. When the firm executed the option, they were able to save $150,000 total. If the total contracts were enough to buy 560,000 pounds, what was the asking price of the pound in US dollars?

A UK-manufactured car sells for GBP 14.000. A french-manufactured car sells for EUR 15.750.  If the EUR/GBP exchange rate is 1.09, how much does the french-made car cost in GBP? a. 17,162 b. 14,450 c. 13,462 d. 18,427

How much of their local currency would someone from UK (local currency is Pound) need to buy an iPad that is being sold for #=$500 in the US?

If a dollar can buy 98 Japanese yen and a British pound costs $1.50, how many yen would it take to buy £1? If a pound of copper costs £1 in Britain, ¥1,600 per pound in Tokyo, and $1.45 per pound in the United States, where is a pound of copper most expensive and where is it least expensive?

A certain commodity cost 0.5 pound sterling in the United Kingdom. In U.S. denominated dollars, this same item can be purchased for 85 cents. The exchange rate is 1 pound sterling = $1.80 U.S. Solve, a.Should this commodity be purchased in the United Kingdom or in the United States? b. If 100,000 items comprise the purchase quantity, how much can be saved in view of your answer to Part (a)?