What is the three-month forward rate for the australian

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Reference no: EM132043100

Using Exchange Rates. Take a look back at Table 18.2 answer the following questions:

a. If you have $100, how many Polish zlotys can you get?

b. How much is one euro worth?

c. If you have five million euros, how many dollars do you have?

d. Which is worth more, a New Zealand dollar or a Singapore dollar?

e. Which is worth more, a Mexican peso or a Chilean peso?

f. How many Swiss francs can you get for a euro? What do you call this rate?

g. Per unit, what is the most valuable currency of those listed?

The least valuable? Using the cross-Rate.

Use the information in Table 18.2 to answer the following questions:

a. Which would you rather have, $100 or pound 100? Why?

b. Which would you rather have, $100Canadian or pound 100? Why?

c. What is the cross-rate for Canadian dollars in terms of British pounds?

For British pounds in terms of Canadian dollars? Forward Exchange Rates.

Use the information in Table 18.2 to answer the lowing questions:

a. What is the six-month forward rate for the Japanese yen in yen per U.S. dollar? Is the yen selling at a premium or a discount? Explain.

b. What is the three-month forward rate for the Australian dollar in U.S. dollars per Australian dollar? Is the dollar selling at a premium or a discount? Explain.

c. What do you think will happen to the value of the dollar relative to yen and the Australian dollar, based on the information in the figure? Explain.

Reference no: EM132043100

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