Spot AUD 0.5800 GBP Spot AUD = 90 Yen Australian Government One Year Yield = 3.4% Australian Inflation Rate = 4.8 % pa Great Britain Government One Year Yield = 1.9% Japanese Inflation Rate = 2.6% pa Outline how the AUD is likely to change against the GBP and the Yen in the next year.
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- Spot rate OMR 0.061666 = 1 CNY = Chinese Yuan Renminbi. It is expected that CNY may depreciate by 3% after one month. What will be new exchange rate after depreciation?2. One year THB and USD forward rate (Expected spot rate in one year) is THB46.75/USD. The expected inflation rate in Thailand is 9% and in the US 4%. What is the current spot exchange rate?Purchasing Power Parity If the current spot rate between the U.S. dollar and the Swedish krona was $1 = 7.6523 krona, and if the inflation rate in the United States was 6.1 percent and in Sweden it was 3.1 percent, then what would be the expected spot rate in one year? Note: Round your calculations and answer to 4 decimal places.
- You observe the following quoted money market rates: Spot exchange rate 95-day Forward exchange rate 95-day USD interest rate 95-day AUD interest rate What will your profit (in USD) be 95 days from now if you borrow USD3 million today and invest in Australia and then convert back to USD? In your calculations assume 360 days per year. a. -USD 361,605.85 b. -USD 352,934.10 -USD 272,802.68 Bid Ask AUD1.185/USD AUD1.189/USD AUD1.341/USD AUD1.349/USD 5.57% p.a. 6.38% p.a. 7.71% p.a. 8.81% p.a. O c. O d. -USD322,300.31 O e. None of the options in this question.Suppose annual inflation rates in the United States and Mexico are expected to be 6 percent and 80 percent, respectively, over the next several years. If the current spot rate for the Mexican peso is $.005, then the best estimate of the peso's spot value in three years is ________. Group of answer choices a$.00276 b$.01190 c$.00321 d$.00102Assume the following information: Current spot rate of New Zealand dollar = $.41 Forecasted spot rate of New Zealand dollar six months from now = $.43 Six month forward rate of the New Zealand dollar = $.44 Six month interest rate on New Zealand dollars (annual rate) = 8% Six month interest rate on U.S. dollars (annual rate) = 9% What are the potential profits in USD or NZD from interest rate arbitrage if you can start with 1,000,000 USD or 1,000,000 NZD? a. 13.27% b. 58340.20 NZD c. 5.87% d. $115,271