Suppose U.S. drivers purchased $50 billion of ExxonMobil producod gasoline dunng a rocent year, with one-half purchased diroctly from ExxonMobil owied gas stations id onie-half from independent (or third.party) gas stahons. Suppose lurther that ExxonMobil purchased the oil (which it refined into gasoltie) from foreign producers for $20 hillron and thal i recolvos B percent of the s as revonuo thal tidependont statons penerate from seling ExxonMobil gasoline. In this case, the value added by ExxonMobil to US. GDP is Sbilon ( nler vour rosponse us an integer

Megahurtz International Car Rentals has rent -a-car outlets throughout the world. It keeps funds for transaction purposes in many foreign currencies. Assume that in 200XX it held 100,000 reals in Brazil worth $42,000. It earned. 12 percent interest, but the real declined 20 percent against the dollar. a. What is the value of its holdings, based on Canadian dollars, at year-end? ( Do not round intermediate calculations.) Value of the holdings Sb. What is the value of its holdings, based on Canadian dollars, at year end if it earned 9 percent and the real went up by 10 percent against the dollar? (Do not round intermediate calculations.) Value of the holdings S

A US corporation has a UK subsidiary that is expected to generate the earnings of GBP2,000,000 at the end of operating quarter, March 31. The U.S. firm wishes to repatriate the GBP, perhaps to pay domestic shareholders a quarterly dividend. Let current spot rate be USD1.5385 = 1 GBP. The U.S. firm would like to hedge against unexpected depreciation in GBP, since such depreciation will results in fewer USD repatriation. The firm can do so by shorting the GBP forward contract by repatriating in April. Since GBP will be repatriated in April, the US Corporation used April GBP forward contract at USD1.5425 = 1 GBP. On maturity date the spot rate between USD and GBP is USD1.5175 = 1 GBP. Identify the position and determine gain or loss to US Corporation. Gain of USD 50,000 Loss of USD 50,000 Gain of GBP 50,000 Loss of GBP 50,000

Suppose then that we have three London seats, New York and Madrid In the first, the buyer type is 109,590 Yen per Dollar, in London the selling rate is 180,000 Yen per Pound Sterling while in New York is 1,677 dollars per British Pound  Suppose we have 100,000,000 yen  Carry out the arbitrage indicate the gain in terms absolute and percentage terms