What will the exchange rate be next year

Reference no: EM133377498

Question 1

You visited Switzerland over summer and brought back 4,259.46 swiss francs to the United States. How many U.S. dollars will you get if you exchange your swiss francs for U.S. dollars? The exchange rate is 1 U.S dollar = 1.0497 swiss francs.

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 2

You just returned from a trip to Netherlands and have 4,179 euros in your pocket. How many dollars will you receive when you exchange this money if the U.S. dollar equivalent of the euro is 0.75?

Enter your answer rounded off to two decimal points. Do not enter any currency in the answer box.

Question 3

Given

USD/Brazilian Real = 3.953

USD/Australian Dollar = 1.02

USD/Chinese Yuan = 9.321

What is the Australian Dollar/Chinese Yuan cross rate?

Enter your answer rounded off to THREE decimal points.

Question 4

Given

USD/Brazilian Real = 3.109

USD/Australian Dollar = 1.424

USD/Chinese Yuan = 7.069

What is the Australian Dollar/Brazilian Real cross rate?

Enter your answer rounded off to THREE decimal points.

Question 5

Suppose you have the following information:
1 GBP = 1.162 USD
1 USD = 1.109 CAD
What is the GBP/CAD cross rate?

Enter your answer rounded off to FOUR decimal points. Do not enter any currency sign in the answer box.

Question 6

In New York, you can exchange $1 for €0.7197 or £0.6003. Suppose that, in Berlin, £1 costs €1.1774. How much profit can you earn on $42,511 using triangle arbitrage?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 7

Assume the current spot rate between the UK and the U.S. is £0.817 per $1, the expected inflation rate in the U.S. is 2.82 percent, and the expected inflation rate in the UK is 4.15 percent. If relative purchasing power parity exists, what will the exchange rate be 3 years from now?

Enter your answer rounded off to FOUR decimal points. Do not enter any currency symbol in th answer box.

Question 8

Assume the current spot rate between the UK and the U.S. is £0.65 per $1, the expected inflation rate in the U.S. is 2.4 percent, and the expected inflation rate in the UK is 3.83 percent. If relative purchasing power parity exists, what will the exchange rate be next year?

Enter your answer rounded off to FOUR decimal points. Do not enter any currency symbol in th answer box.

Reference no: EM133377498

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