Reference no: EM133072632
-Compute the bid/ask percentage spread for Mexican peso in which the ask rate is 20.6 New peso to the dollar and the bid rate is 21.5 New peso to the dollar.
-Explain the foreign exchange situation for countries that use the euro when they engage in international trade among themselves.
-If the direct exchange rate of the euro is worth £0.685, what is the indirect rate of the euro? That is, what is the value of a pound in euros?
-Assume Poland's currency (the zloty) is worth £0.17 and the Japanese yen is worth £0.005. What is the cross (implied) rate of the zloty with respect to yen?
-Explain how syndicated loans are used in international markets.
-What is the function of the international money market? Briefly describe the reasons for the development and growth of the European money market. Explain how the international money, credit, and bond markets differ from one another.
-With regard to Eurocredit loans, who are the borrowers?
-What is LIBOR and how is it used in the Eurocredit market?