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Assume an American firm takes a long position on British Pound call options. The premium is $0.05, and the strike price is $1.45. When the firm executed the option, they were able to save $150,000 total. If the total contracts were enough to buy 560,000 pounds, what was the asking price of the pound in US dollars?

How would each of these events affect the supply or demand for Japanese yen?  A) Stronger U.S. economic growth. B) A decline in Japanese interest rates. C) Higher inflation in the United States.

Explain all option compulsary......you will not explain all option then I will give you down upvote...

01. True or False: The supply schedule of yen has a positive-sloping region, which corresponds to the inelastic region on the Japanese demand schedule for foreign currency.

Suppose that the FED decreases the required reserve ratio. How will this affect the exchange market for U.S. dollars?  Explain/show the effect(s) of this move by the FED.  Include the initial effect(s), the market adjustment(s), and the final result(s) on equilibrium.  Suppose that the following exchange rates are current: 1 US$ = 61.42 Indian Rupees, 1 Japanese Yen = 0.57 Indian Rupees, and 1 US$ = 107.5 Japanese Yen. Calculate the shadow price between Rupees and Yen.  Using $1,000 and triangular currency arbitrage, make three trades and calculate the profit earned.

In Belarus, the government doesn’t allow trading of its ruble outside a narrow price range, which greatly overvalues the ruble – there is a price floor on the ruble compared to euros or dollars.  Because of the floor, currency trading has dried up – who would want to sell foreign currencies for grossly overpriced Belarusian rubles?  A friend of one of my students has a web site designed to overcome rigidities in this market, a sort of Craigslist for currency.  People specify amounts they are willing to buy or sell, agree to trade at some price and arrange a meeting place.  When they meet, the trade nominally occurs at the official price floor, making the transaction nominally legal; but the person selling rubles makes extra payments to the buyer to lower the price sufficiently so that the trade actually takes place at the equilibrium price.  This is one more way in which technology helps markets circumvent imperfections and rigidities. Q: If the Belarusian government increases…

Japan Airline is interested in purchasing new commercial aircraft from us manufacturer Boeing at a price of 89 million dollars per plane. What is the difference in the Yen price between month 1 and month 2? During which month is Japan Airlines more likely to buy more planes? Why? Explain your answer using the numbers from the chart and show your math.

Suppose the price of a big mac in China is 16 Yuan, while in the US its price is 54. If the Yuan dollar exchange rate is a Yuan/dollar, by how much is the Yuan under/overvalued? A) undervalued %80 B) overvalued %75 C) overvalued %100 D)undervalued %100 E) undervalued %75

Suppose interest rates on 1-year deposits & loans in the U.K. equal 1.5%, and interest rates on 1-year deposits and loans in Mexico are 4.5%. Given these interest rates, a trader at AstraZeneca's U.K. bank would always profit from carry trade strategy as long as the % change in the #MXN/GBP (#Mexican pesos/1 GBP) is -- (choose the best answer from below) Group of answer choices less than 3% greater than 4.5% greater than 3% less than 4.5%

You hold $12,000 in cash and the exchange rate of USD (American dollar) to Venezuelan bolivar is 10.15. Calculate how much your $12,000 are worth in Venezuelan bolivars (you will need this number for the calculations below). Now, suppose that you hold as much cash in bolivars, as you found above. But the exchange rate of USD to Venezuelan bolivar goes down to 9.85. How much would your cash amount in bolivars be worth in USD? Question 29 options: A) $120 B) $11,643 $12,000 D) $12,365

At the end of 2021, the Federal Reserve took an inventory of its foreign currency reserves. Since the previous year, the following had changed: How much did NCO change during this time period? Round to two (2) decimal places Currency (+/-) Change (millions) Yen 44.08 Yuan -9.78 US Dollars -45.15 Rupees 62.63 Riyals 66.59 Pesos 91.19 Shekels -92.54

What is the correct option for this question?

Suppose safe one-year bonds earn 4% in the U.S. and 2% in the U.K. If the expected future exchange rate is $3.00 per pound, what is the current spot rate? Selected answer will be automatically saved. For keyboard navigation, press up /down arrow keys to select an answer. a $2.94, b $2.97 $3.03 d $3.06

If the Fed started printing large quantities ofU.S. dollars, what would happen to the numberof Japanese yen a dollar could buy? Why

You are going to Japan on an exchange trip in a few months and need to turn your dollars into the Japanese currency, the yen. Right now the exchange rate is $1 = 105 yen, but you expect the dollar to appreciate next month and it should be valued at $1= 107 yen. If you exchange $200 for yen today, how many yen will you receive? Explain. If you decide to wait and exchange your dollars when they are worth $1= 107 yen, how many yen will you receive? Explain. Based on this information, should you exchange your money now or wait a few months? Explain.

Because Vin’s receives payments in British pounds every month and converts those pounds into euros, it needs to closely monitor the value of the British pound in the future. David Hewson, owner of Vin’s, expects that inflation will rise substantially in the UK, while inflation in Ireland will remain low. He also expects that the interest rates in both countries will rise about the same amount. a. Given David’s expectations, forecast whether the pound will appreciate against the euro over time. b. Given David’s expectations, will Vin’s be favourably or unfavourably affected by the future changes in the value of the pound

Hong Kong, which has been pegging its currency, the Hong Kong Dollar, to the U.S. dollar, finds that its US dollar reserves are increasing over time. This means the the Hong Kong dollar is overvalued. True. False.

If Juana contracts to buy U.S. office equipment in U.S. dollars and her domestic currency depreciates against the U.S. dollar between the time the contract is signed and the bill is paid, she will wind up paying less for the equipment because she stayed in the spot market.  True or false?

Suppose you are a pension fund manager. Your fund holds bank deposits in Australia, Japan, the United States and other countries. News on the iron ore market causes you to raise your expected price of iron ore per tonne. Given that Australia is a major exporter of iron ore, what effect would you expect this to have on the exchange rate between the Australian dollar and the Japanese Yen. Illustrate your answer using an appropriate diagram.

The third box is the same as the first box(increase or decrease). The fourth box is the same as the second box(demand or supply).