Practice_Problems_IntrotoOptions_1 (1)

Economics   Suppose the yen is expected to appreciate by 4% against the pound in one year. If the nominal interest in Japan is 6%, and uncovered interest parity holds, the nominal interest rate in the UK. must be (hint: use the simpler/linear formula) (a) 2%. (b) 5%. (c) 10%.

ALL THREE QUESTIONS  1.You want to convert AUD 3 million into Japanese Yen (JPY). The exchange rate is 133.3336 JPY/USD, and 0.6456 USD/AUD. How much is AUD 3 million worth in JPY? (Round to two decimal places) (A) JPY 619,579,925.65 (B) JPY 34,851.23 (C) JPY 14,525.97 (D) JPY 258,240,516.48   2.Which of the following foreign exchange rate quotes is given an indirect quote from an American's perspective? (A) 0.6671 USD/AUD (B) 1.2407 USD per GBP (C) 1 USD = 1.3493 CAD (D) 0.1452 USD per any     3.If the AUD appreciates against the USD, from an Australian's perspective, the direct quote of the AUD will (A) Increase (B) Decrease (C) Unchanged (D) None of the above.

As a foreign exchange trader at a Citibank, you are given the following quotations: 1-month 2-month Exchange Rate Spot Rate forward forward 1 Singapore Dollar (S$) 100 Japanese Yen (100¥) 1 Australian Dollar (AUD) RM3.0500/10 RM3.5000/30 RM3.1010/40 20/70 25/65 45/35 60/50 35/70 65/55 Country Malaysia Japan Singapore Rate 15% 3-Month interest rate 10% 20% Calculate: i. If the bank's customer needs S$5,000 today, how much is that in RM?

If 1 US ($) is worth 1.5 (E) British Pound sterling, then that suggests that the US $ is Weaker O Stronger Appreciating Strengthening

For each of the following events/items, state whether the impact is positive(+), negative (-) or no impact (0).a) A Malaysian company has imported from Japan. The Yen appreciates against theRinggit.b) A Malaysian company has imported from Japan. What is the impact if the Ringgitappreciates against the Yen?c) A Malaysian company borrows in Euros from Deutsche Bank. The loan is repayablein six months. The Ringgit appreciates against the Euro.d) What happens if the loan in (c) above is repayable in one lump sum in five yearsfrom now and the Euro now appreciates against the Malaysian Ringgit?e) A Malaysian mutual fund invests in an Australian ETF (exchange traded fund). TheAustralian Dollar appreciates against the Malaysian Ringgit.

The cash rate in Australia is a benchmark interest rate which is set by the Board of the Reserve Bank of Australia and has recently been at a record low. (a) State the cash rate announced at the September, 2021, meeting of the Board of the Reserve Bank of Australia. (b) If the cash rate were to increase, would you expect the Australian dollar to increase or decrease against most other currencies? Explain your answer. (c) If the cash rate were to decrease, would you expect the Australian dollar to increase or decrease against most other currencies? Explain your answer.  (d) Explain why the cash rate is not expected to increase until 2024 at the earliest?

A U.S. MNC has subsidiaries in Britain and Japan. Assume the revenue in both subsidiaries in local currency remains the same. British WOS WOS Revenue £100M ¥10 Bn exchange $1.7/£ rate to $1.6/£ Japanese ¥ 85.12/$ to ¥ 77.12/$ What will be the impact on the $ amounts from each WOS? O Increase from British WOS; Increase from Japanese WOS O decrease from British WOS; decrease from Japanese WOS O Increase from British WOS; decrease from Japanese WOS O decrease from British WOS; Increase from Japanese WOS

142.) Currency (C) =  800 Reserves (R) =  400 Deposits (D) = 1600   What is the value of the currency-deposit ratio?       0.2       0.25     0.4         0.5

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(a) In this case, Cunneen thinks that the RBA wants to       [maintain]  the value of the Australian dollar. (b) If the RBA wanted to reduce the value of the Australian dollar, it would need to       [reduce]  Australian interest rates. (c) If the RBA’s strategy was to increase the value of the Australian dollar, it would have taken steps to cause       [less]  capital to flow into Australian financial markets. (d) A strategy of reducing the value of the Australian dollar via conventional monetary policy would be       [more, less, just as]  difficult, if interest rates overseas were to rise. (e) Were the RBA to want the value of the Australian dollar to be higher, they would need the demand curve for the Australian dollar in the FX market to       [shift to the right, shift to the left, not shift at all]  . (f) Were the RBA to want the value of the Australian dollar to be lower, they would need the supply curve for the Australian dollar in the FX market to       [shift to the right,…

7. If inflation is higher in the United States than in the United Kingdom, (a) the dollar should appreciate to the pound. (b) the dollar should depreciate to the pound. (c) real interest rates should be higher in the United States than in the United Kingdom. (d) the U.S. net exports to the United Kingdom should fall. (e) pounds will flow to the United States from the United Kingdom.

On August 8, 2000, Zimbabwe changed the value of the Zimbabwe dollar from Z$38∕US$ to Z$50∕US$. (a) What was the original U.S. dollar value of the Zimbabwe dollar? What is the new U.S. dollar value of the Zimbabwe dollar? (b) By what percentage has the Zimbabwe dollar devalued (revalued) relative to the U.S. dollar? (c) By what percentage has the U.S. dollar appreciated (depreciated) relative to the Zimbabwe dollar?

Jetta production cost in 2002 and 2003 was 8,500 Euro per Jetta. Jettas were sold in US at $12,000 in 2002 and 2003. Forward hedge exchange rate was 1 $/Euro in 2003. The market exchange rate was 1.83 $/Euro (i.e. rate without hedge) in 2003. If 1,500 Jetta were sold in US, in 2003, by 40% forward hedge and 60% not hedged. What would be profits or loss from sales of 1,500 Jetta in US? € 351,639 €1, 281,946 € 1,291,661 € 362,259

Typed and correct answer please. I ll rate

Given that: Spet rate 3 month forward £1/$1.6365 1.6385 0.005 -0.0047 Compute the cost of cover to a foreign exchange customer who: Buys dollars one month forward Sells dollars one month forward

The Korean Won has fallen nearly 20% over the past year relative to the US$: If the uncovered interest parity theory were correct, what should Korean interest rates have been one year ago if rates in the U.S. were 10%: (a) 10%; (b) 20%; (c) 30%; (d) 0 Please show work

2. Analyze the data from China, Japan, Switzerland, Indonesia, Ukraine, and Taiwan (6 countries), and fill in the table as follow showing overvalued and undervalued currencies. (10%) Write a conclusion stating why PPP doesn't hold true according to the actual data. (10%) Country Local dollar Implied PPP Actual of the dollar price 1 United States China Indonesia Switzerland Ukraine Taiwan 5 20 30000 6.5 54 69 exchange rate 1 6.8 14000 0.9 28 30 Under/over against the dollar 0% valuation

- Which of the following is not included as one of the component values of an SDR?  British Pound U.S. Dollar Japanese Yen Swiss Franc

If the direct quote for a U.S. investor for British pounds is $1.43/£, then the indirect quote for the U.S. investor would be ________ and the direct quote for the British investor would be ________. A) £0.699/$; £0.699/$ B) $0.699/£; £0.699/$ C) £1.43/£; £0.699/$ D) £0.699/$; $1.43/£ E) None of the Above

2-The UK company has to make payment to Omani Company in OMR after 60 days for the purchase of crude oil. Since the company is exposed to the risk of currency fluctuations, the UK company purchased a forward contract. On maturity date the current exchange rate of OMR higher than the forward contract rate. What is the status of the UK company on maturity date? a. UK company gaining from currency forward contract b. UK company losing from currency forward contract c. Omani company gaining from currency forward contract d. None of the options

What is the impact of each of the following changes (other variables remaining unchanged) on the real exchange rate. (a) The Consumer Price Index (which measures the price level) in the United States rises by 4 percent. (b) The Consumer Price Index in Jamaica rises by 9 percent. (c) The two Consumer Price Index changes above occur at the same time. (d) The nominal exchange rate moves from 86 to 90 for a U.S. dollar. (e) The nominal exchange rate depreciates by 10 percent at the same time that local inflation is 10 percent and the U.S. price level is stable.

Otondo , a currency trader in East African Community, has ksh 400,000. He wishes to assess his triangular arbitrage by moving to Uganda, and Tanzania. The exchange rate quotes from the currency convertor was:  32TZ/1 KES  20UGH/IKES Agreed exchange rate between Uganda shillings and Tanzania shilling was 1.5 UGH /1TZ Compute the results. Explain your results

I need the answer as soon as possible

PQ 22b What is a situation the purchasing power exchange rate would be used?

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CHECK ALL THE APPLY FOR LAST QUESTION Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.

Hong Kong was a British territory for approximately 150 years before being handed back to China in 1997. It is now a Special Administrative Region of China. (a)  State the currency of Hong Kong and explain why it is a pegged currency. (b)  State the currency of China and explain why Hong Kong does not use the currency of China as its currency.

(a) Recently, a government official in Europe stated that the European Central Bank needs to weaken the euro so as to improve the European economy. Explains the logic behind this recommendation, and state whether you believe the strategy would be successful.

What is a foreign exchange rate? (a) The rate at which the currency of one country trades for the goods of another country.(b) The rate at which one country’s goods trade for those of another country.(c) The rate at which currencies of different countries are exchanged.(d) The rate at which one country’s currency trades for gold provided byanother country.Q.1.12 As a result of more Americans visiting South Africa, we can expect, ceteris paribus:(a) an appreciation of the rand relative to the dollar.(b) a depreciation of the rand relative to the dollar.(c) an appreciation of the dollar relative to the rand.(d) that it will cost South Africans more to visit the United States.Q.1.13 What is a tariff? (a) A form of subsidy.(b) A tax on imported goods.(c) A tax on foreign property.(d) A form of quota.Q.1.14 In the Keynesian model, what is the most important determinant of a household’s consumption?(a) Disposable income.(b) Total wealth.(c) The number of persons in the household.(d) Its’ net…

(1) What is balance of payments? How could (2) the acquisition of a Moldovan soft drinks company by a US company for 5 million dollars in 2018 and (3) annual profits from the US investment in Moldova at 145.000 $ in 2019 be recorded in the balance payments in Moldova and the USA in 2018 and 2019. (Please answer 1,2,3 seperately.)

Please see attachment and type out the correct answer ASAP with proper explanation of the each option given below within 40 50 minutes.will give you thumbs up only for the correct answer. Thank you