What are the direct quote and indirect quote of us dollar

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Wall Street Journal (WSJ) Assignment on International Finance

Use a recent (within the last 30 days from the date of your assignment) issue of the WSJ and go to the "Currencies" table to answer the following questions, assuming the U.S. dollar is the home currency:

1. What are the direct quote and indirect quote of the U.S. dollar versus a currency of your choosing.

2. Relative to this currency, did the U.S. dollar appreciate or depreciate since the beginning of the year (YTD stands for Year to Date)?

3. How many Japanese Yens equal one Euro? Alternatively, calculate this rate using the U.S. equivalent rate for the Euro and the Yen. Show your work!

4. Consider the six-month forward market. What is the U.S.$ equivalent forward rate for the Japanese Yen? Is the forward Japanese Yen exchange rate selling at premium or discount compared to the spot Japanese Yen exchange rate? Explain why you say so! (If your argument is based on comparing numbers please include them in your answer). If the forward rates for the Japanese Yen are not provided, then in its place consider another currency (such as Canadian Dollar), for which the forward rates are provided.

Reference no: EM131274514

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