Suppose that a chocolate bar costs 20 euros in France and 30 Singaporean dollars in Singapore. If the exchange rate is 1.20 euros per Singaporean dollars, what is the real exchange rate?
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Suppose that a chocolate bar costs 20 euros in France and 30 Singaporean dollars in Singapore. If the exchange rate is 1.20 euros per Singaporean dollars, what is the real exchange rate?
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Solved in 2 steps
- If euros sell for 1.50 (U.S.) per euro, what should dollars sell for in euros per dollar?If a Japanese car costs 1,500,000 yen, a similar American car costs $30,000, and a dollar can buy 100 yen, what are the nominal and real exchange rates?Suppose exchange rate of Japanese yen in US $ is $.010, exchange rate of euro in US $ is $1.34, and exchange rate of euro in Japanese yen is 139 yen and you have $100, 000 to invest. By looking the exchange rates, do you see triangular arbitrage opportunity? What is your profit or loss? Show the work to support your answer.
- Suppose you want to buy a German car, which costs €55,000. What will be price of this car in the United States if the exchange rate is €0.90 per U.S. dollar? What will happen to the price if the exchange rate increases to €0.95 per U.S. dollar?A laptop computer costs €1,100 in Europe. The same computer costs GHS 1,540 in Ghana. If we assume that the law of one price (LOP) holds, what is the spot exchange rate between the GHS and the euro?A computer cost $1,300 in the United States. The same computer costs € 1,100 euros in Europe. Assuming that the purchasing power parity( PPP) strictly holds, what is the spot exchange rate between dollar and the euro?
- A computer costs $ 1,300 in the United States. The same computer cost £1100 in Europe. Assuming that the purchasing power parity (PPP) strictly holds, what is the spot exchange rate between the dollar and the euro?If euros sell for $1.50 (U.S.) per euro, what should dollars sell for in eurosper dollar?A laptop computer costs £1,100 in Europe. The same computer cost GHC 1,540 in Ghana. If we assume that the law of one price (LOP) holds, what is the spot exchange rate between the GHC and the euro?
- A product sells for $1,000 in the U.S. If the exchange rate between $ and euro is $1 = 0.90 euro, and if ppp holds, what would be the price of the same product in europe?Suppose the exchange rate between U.S. dollars and British Pounds is $1.00 = 1.70 Pounds and the exchange rate between the U.S. dollar and the Euro is $1.00 = 1.24 Euros. What is the direct quote cross rate of one Pound to the euro? (How many Euros will one Pound purchase?) Instruction: Type your answer in euros, and round to two decimal places.The current market exchange rate is 2.2 francs per pound. Suppose you need to buy 6 pounds using French francs. If you buy 6 pounds directly in the foreign exchange market, it will cost you 13.2 francs. Alternatively, given pound is overpricing (higher than shipping cost), you can _________for the benefit of the exchange. A. first buy an ounce of gold for 6 pounds in England and then ship it to France and sell it for 12 francs B. first buy an ounce of gold for 12 francs in England and then ship it to France and sell it for 6 pounds C. first buy an ounce of gold for 12 francs in France and then ship it to England and sell it for 6 pounds D. first buy an ounce of gold for 6 pounds in England and then ship it to France and sell it for 12 francs