Suppose safe one-year bonds earn 4% in the U.S. and 2% in the U.K. If the expected future exchange rate is $3.00 per pound, what is the current spot rate? Selected answer will be automatically saved. For keyboard navigation, press up /down arrow keys to select an answer. a $2.94, b $2.97 $3.03 d $3.06
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- Suppose that 1 Swedish krona could be purchased in the foreign exchange market today for $0.36. If the krona appreciated 11% tomorrow against the dollar, how many kronas would a dollar buy tomorrow? LPlease no written by hand Let’s suppose you (USA dealer) imported one Lamborghini SVJ-Verde Scandal from Italian dealer on March 1, 2019 at € 400,000, payable in 30 days. The exchange rate on March 1, 2019 was 1.16 US$/€. Then you sold all of them in the US market at US$610,000 in cash on March 29, 2019. On April 1, 2019, you paid to Italian car dealer at the exchange rate of 1.26 US$/€. What was profit or loss from this business in terms of US$? (Please assume all costs are included in price.) Group of answer choices $106,000 $98,0210 $96,400 $92,020The Central American country of Belize is one of approximately 14 Caribbean community countries that pegs its currency to the U.S. dollar. The pegged rate is 2 Belize dollars equal 1 U.S. dollar (2 BZD = 1 USD or 1 BZD = 0.50 USD). This is illustrated in the figure below. Exchange Rate (USD BZD) 2.00 1.00 0.50 D Quantity of Belize dollars traded per day How will the actions of speculators affect this market? O The Belize dollar supply curve will shift to the right and the Belize dollar demand curve will shift to the left. O The Belize dollar supply curve and the Belize dollar demand curve will shift to the right. O The Belize dollar supply curve will shift to the left and the Belize dollar demand curve shift to the right. The Belize dollar supply curve and the Belize dollar demand curve will shift to the left.
- QUESTION 2 The following figure shows the Euro-U.S. Dollar exchange rate in the past year, i.e., the price of 1 Euro in U.S. dollars. Which of the following statements is incorrect? EUR/USD (EURUSD=X) ☆ CCY - CCY Delayed Price. Currency in USD 1.1478 -0.0113 (-0.9783%) As of 10.29PM GMT. Market open. O Indicators O Comparison 8 Date Range 10 5D 1M W Interval 1D N Line O Draw O Set 3M 6M YTD 1Y 2Y 5Y Мах yahoo!finance EURUSD-X 1.1579 1.2250 1.2000 1.1750 11478 Dec 2021 Feb Mar Apr May Jun Jul Aug Sep Oct Novmakes it harder to compare lira amounts from different times. We use _ to adjust figures so that they can be compared. For example, in September 1998 1 USD was 0.21 liras. Today the exchange rate is 8.5 liras to 1 USD. Was the Turkish lira really that much more valuable in 1998 than it is now? (If you do the inflation correction you will see that the lira was indeed 15% more valuable against the US dollar back then as compared to its current value.) A) Economic growth, the real GDP B) the CPI, inflation C) Inflation, the CPI D) Unemployment, the GDP Deflator E) Changes in prices, inflationA UK-manufactured car sells for GBP 14.000. A french-manufactured car sells for EUR 15.750. If the EUR/GBP exchange rate changes from 1.17 to 1.09, what is the percentage change in the price of the french car in GBP? a. -6.8% b. -7.3% c. 6.8% d. 7.3%
- Assume that when digging to plant flowers at the backyard of college in northern Ireland a very rich vein of gold is discovered . If the government (a)monetises (b) sterilises this windfall how will the pound sterling to Euro exchange rate be affectedSuppose DeGraw Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at a price of 143.5 million yen, when the exchange rate was 140 yen per dollar. In order to close the sale, DeGraw agreed to be paid in yen, thus agreeing to take some exchange rate risk for the transaction. The terms were net 6 months. a. If the yen fell against the dollar such that one dollar would buy 154.4 yen when the invoice was paid, what dollar amount would DeGraw receive after it exchanged yen for U.S. dollars? b. What is the difference (in dollars) between what DeGraw could have received had they asked for payment immediately (before the devaluation of the yen) instead of six months later?Thomas , a currency trader in East African Community, has ksh 400,000. He wishes to assess if triangular arbitrage by moving to Uganda, and Tanzania. The exchange rate quotes from the currency convertor was: 32TZ/1 KES 20UGH/IKES Agreed exchange rate between Uganda shillings and Tanzania shilling was 1.5 UGH /1TZ Compute the cross exchange rate and triangular arbitrage profit. Explain your answer.
- Otondo , a currency trader in East African Community, has ksh 400,000. He wishes to assess his triangular arbitrage by moving to Uganda, and Tanzania. The exchange rate quotes from the currency convertor was: 32TZ/1 KES 20UGH/IKES Agreed exchange rate between Uganda shillings and Tanzania shilling was 1.5 UGH /1TZ Compute the results. Explain your resultsOnly typed answer If you are an American, and you agree to pay 100 Euro to another person in 6 months, who bears the currency fluctuation risk----you or the person you will pay? Why?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