Question 13 Revisit Later Let us say that USD-INR exchange rate is INR 80/USD. Also, based on the yearly data of the past, the changes in the exchange rate have a yearly mean of 5% and a yearly volatility of 10%. What is the probability that Rupee will depreciate to INR 92 or more in 1 year? Select an option O 6.68% O 16% O 12% O

An investor located in the US has two investment options for her $105,000. One option is the US, where the interest rate is 3.5%. The other option is Australia, where the interest rate is in. The current exchange rate is $1 US buys 1.6 Australian dollars and the future expected exchange rate is $1 US buys 1.62 Australian. If the investor believes the the two future values are the same, what is in? O 3.10% O3.95% O4.79% 5.25%

Fatma is quoted a nominal interest rate of 9.15% per annum compounded every four months on her investment of $1,200, the effective rate per annum is: O 9.43% 10.25% O 9.47% O 10.15% O 9.00%

Millon National Bank has 8 million British pounds (£) in one-year assets and £6 million in one- е. year liabilities. In addition, it has one-year liabilities of 3.5 million euros (€). Assets are earning 8 percent and both liabilities are being paid at a rate of 7 percent. All interest and principal will be paid at the end of the year. What is the net interest income in dollars if the spot prices at the end of the year for US $ to British £ are $1.30/£ and for Euro to US $ are €1.25/$

In 2020, inflation rate in UK is 4.5% and in Spain it is 4.1%. In 2021, inflation rate in UK is 7.3% and in Spain it is 6.9%. In 2020 1.47EURO / GBP. Assume UK is home country. What is the expected exchange rate in 2022 (2 years later)? Select one: O a. 0.675 O b. 1.465 O c. 1.464 O d. 1.459

Which type of money is most likely to see its value fluctuate in the foreign exchange market? O a. fiat money O b. commodity money O c. price-indexed money O d. pegged-exchange rate