rates and prices today: the spot exchange rate today: AU$2.05 per U.K pound; the price level in Australia today: AU$4.00; and the price level in the U.K. today: 2.00 pounds (a) Calculate the real exchange

2) Using the following cost and revenue information shown for Walmart, determine how the costs, revenue, and cash flow would be affected by three possible exchange rate scenarios for the New Zealand dollar (NZ$): (1) NZ$ = $.50, (2) NZ$ = $.55, and (3) NZ$ = $.60. (Assume U.S. sales will be unaffected by the exchange rate.) Assume that NZ$ earnings will be remitted to the U.S. parent at the end of the period. Ignore possible tax effects. Forecasted Net Cash Flows: Walmart. (in millions of U.S. dollars and New Zealand dollars) Sales Cost of Materials Operating Expenses Interest Expense Cash Flow U.S. Business $800 500 300 100 -$100 New Zealand Business NZ$800 100 0 0 NZ$700

The following is information on interest-rates and exchange rates for Australia and the U.K. being quoted by ANZ bank (assume there are no bid-ask spreads, for simplicity). The spot exchange rate for the number of AUD (Australian dollars) per GBP (British pound) is 1.8005. The annualized 6 month interest-rate in Australia (respectively, the U.K.) is 10% (respectively, 8%). Using the formula given in class, what is the 6 month forward exchange rate (consistent with no arbitrage) expressed as the number of AUD per GBP? Assume 6 months is exactly 0.5 years. Give your answer to 4 decimal places (because Canvas only accepts 4 decimal places).

Assume the current exchange rate between the US dollar and the UK Pound Sterling is 0.6 ($ per pound).  Assuming the purchase price parity theory holds, what is the new exchange rate ($ per pound) if the price level in the US increases by 5% and the price level in the UK increases by 20%?

In a currency swap, using the information below, can you calculate the quarterly payments that should be made in Australian dollars? The exchange rate is 1.3 Australian dollars per one US dollar and the notional amount in Australian dollars is $100,000.00 TTM PVF 90 180 270 360 Singapore Dollars 0.98 0.94 0.93 0.89 PVF US Dollars 0.99 0.98 0.97 0.96 Please round your answer to the nearest three decimals. Do not type the $ symbol.