Solution-Trend of the exchange rate

Trend of the exchange rate

Reference no: EM133057230

Bank loans for $ 1,000 are in dollars, the company wants to know what would be the worst loss it could present in a year with 99% confidence due to an increase in the exchange rate. For the above, it has the following monthly information:

Month	Exchange rate
January	13.7
February	13.4
March	13.8
April	14.0
May	14.5

Complement the following statements:

a) The trend of the exchange rate is ____

b) The expected loss for the exchange rate of one month is _____

c) The expected exchange rate for the month of June is _____

d) The volatility of the exchange rate is ____

e) The worst increase in the exchange rate that could occur in a year with 99% confidence is ____, which would imply that the exchange rate is at _____ and would generate losses of $ _______ in a year.

Reference no: EM133057230

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Trend of the exchange rate

Reference no: EM133057230

Reference no: EM133057230

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