International finance, finance, Other Engineering

Assignment Help:
at the beginning of year 1 the terranian central bank conducted k100 million of dollar selling/terranian kwacha buying intervention. The intervention was undertaken at the rate of 1 dollar per kwacha and immediately afterwards the currency strengthened to 1.2 dollars per kwacha and stayed there.

at the end of year 5 the exchange rate is still at 1.1 whilst kwacha 1 year interest rates are (and have always been) 6% whilst dollar 1 year interest rates are (and have always) been 1%.
The profit/loss of the intervention at then end of year 5 is _________ million Kwacha.
Hint: quote you answer to 1 decimal place and express a loss by putting a ''-'' in front of your answer (if a profit do not put a ''+'')

Related Discussions:- International finance, finance

Heat and mass transfer, Water enters a smooth thin-walled tube of 1 inch di...

Water enters a smooth thin-walled tube of 1 inch diameter at 50F and leaves at 150F. Heat is supplied to the water by condensing steam on the surface of the tube at a constant temp

Cascaded, circit diagram and operation

circit diagram and operation

Electronics, how to make an amplifier circuit ?

how to make an amplifier circuit ?

Capital structure, how to identify the capital structure of the company?

how to identify the capital structure of the company?

What is the meaning of context-awareness, Question : (a) The Guide proj...

Question : (a) The Guide project has been developed to provide city visitors with a hand-held context-aware tourist guide. (i) In this case, what is the meaning of context-a

ALGORITHM, write an algorithm to find a number that multiplies your name 10...

write an algorithm to find a number that multiplies your name 10 times

Difference between income & expenditure statement, Difference between incom...

Difference between income & expenditure statement P&L is to be ready by the Company or Dealing Origination which evolved in Dealing of any commodity or manufacturing of completed e

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd