If the exchange rate is such that $1 equals 5 euros, then the price of a euro is a. $5 b. $1 c. $0.40 d. $0.20

Q: Crazy car price in Pounds is 576 and in Euros is 642. What is the exchange rate for Euro? a) 1.1146…

A: Solution: Price of Car in Pound = 576 Price of car in Euro = 642

Q: If the exchange rate at time t is Et = €1/$. You invest $1 in an euro asset at t, which has an…

A: Future value of euro will be calculated by future value formula. Future value = Present value*(1+r)n…

Q: Suppose the Japanese yen exchange rate is ¥107 = $1 and the British pound exchange rate is £1 =…

A: Cross rate refers to the exchange rate of any two currencies whose quote is not published. A…

Q: Suppose that the one-year interest rate is 4.0 percent in Italy, the spot exchange rate is $1.58/€,…

A: One year interest rate in Italy = 4% Spot exchange rate $1.58/ euro One year forward exchange rate =…

Q: Currently, $1 = SAR 25, SAR 1 = 0.025 Yen. What is the exchange rate between the U.S. dollar and the…

A: The exchange rate of US Dollar (USD) and Japanese Yen (JPY) can be calculated with the help of cross…

Q: Assume that Canadian (domestic) interest rate is 6%. EU (foreign) interest rate is 3%. and the…

A: Concept. Interest rate parity theory defines relationship between interest rates and exchange rates…

Q: The $/€ exchange rate is €1 = $1.45, and the €/SFr exchange rate is SFr1 = €0.71. What is the SFr/$…

A: 1) To find the  SFr/$  Exchange rate, we need to find the cross rate,   SFr/$      =  €/$ *   SFr/€…

Q: Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.41 = $1.0o, and the exchange…

A: Exchange rate (ER) is a value at which 2 different currencies are exchanged or traded. ER is…

Q: Let the NZ$-Euro exchange rate be 0.60 (1 NZD buys 0.60 Euro). Let the NZ price level (P) be 40 and…

A: Real exchange rate or RER is that exchange rate which is inflation adjusted i.e. rate is adjusted…

Q: 1. What is the price of 1 US dollar in terms of each of the following currencies, given the…

A: Exchange rate is that rate at which currencies of two countries can be exchanged with each other.

Q: Question If the exchange rate is such that $1 equals 5 euros, then the price of a euro is Answer a.…

A: Given information is: Exchange rate: $1 = 5 Euros

Q: The following quotes are given as follows: Tunisian Dinar(TND) 1.43100=1 USD and USD2.59713=1 OMR…

A: TND/OMR = 1.43100 * 2.59713 = 3.71649

Q: The Swiss Franc is trading at 1.1106 $/SFr, the euro is trading at 1.1268 $/euro. If you can buy or…

A: Arbitrary profit is the excess amount earned by using the mis-pricing in the market.

Q: Briefly explain what "forward premium" is. Today's British Pounds to US Dollars Exchange Rate is…

A: Exchange rate (ER) is a value at which two currencies are traded or exchanged. Exchange rate depends…

Q: If it takes 1.25 euros to buy 1 US dollar, the direct quote for the exchange rate in Europe is: A.…

A: direct quotes states what amount of domestic currency required to buy one unit of foreign currency.

Q: Suppose it is January 1980 and the $/DM exchange rate is DM1 = $0.36 and the DM/FF exchange rate is…

A: The question is based on the concept of Forex transactions.

Q: Suppose the exchange rate between the U.S. dollar and the Swedish kronawas 7.97 krona =$1, and the…

A: Exchange rate is the rate at which one currency of a country is exchanged with currency of another…

Q: d) You observe the following exchange rates in the market.       i) $1 = 0.85 euros and 1 krona = $…

A:

Q: Suppose the exchange rate between the U.S. dollar and the Swedish krona was 9.1 krona = $1 and the…

A: given, 9.1 krona = $1 ( this is indirect quotation) 1 pound = $1.3 ( this is direct quotation)…

Q: The current exchange rate is €0.92 per U.S. dollar, but you think that U.S. dollar will appreciate…

A: Given: Current exchange rate (Spot rate)=€0.92 per U.S dollarForward exchange  rate=€0.95 per U.S.…

Q: if 1 OMR = $ 2.60, so what is the exchange rate in terms of 1 US$?

A: Currency exchange rate is the rate at which one currency can be exchanged i.e. bought or sold for…

Q: Given the following exchange rates in the market, what should be the cross exchange rate between…

A: Cross exchange rate is the rate which is determined between two currencies. Both the currencies are…

Q: Suppose the Japanese yen exchange rate is ¥109 = $1 and the British pound exchange rate is £1 =…

A: In finance, a currency exchange rate represents the value of one country's currency against per unit…

Q: Calculate the possible rate for buying GBP

A: Triangular arbitrage is the process where two related goods set the third price. The FX cross…

Q: Crazy car price in Pounds is 576 and in Euros is 642. What is the exchange rate for Euro? a) 1.1146…

A: Exchange rate is the value of one currency expressed in terms of another currency. It is the rate at…

Q: The dollar-euro exchange rate is USD 1.25 = EUR 1, and the dollar-yen exchange rate is JPY 100 = USD…

A: Cross rate for Euro Yen  = USD/EUR * JPY/USD

Q: if the spot rate is NZ$0.50/$ and the forward rate is NZ$0.55/$.The spot exchange rate and the…

A: The spot rates and futures rates in terms of two currencies can be calculated using the exchange…

Q: If spot rate is USD2.5968/OMR and interest rate for USD is 29% per annum. One-year forward exchange…

A: Spot Rate = 2.5968/OMR Interest Rate for USD = 2% per annum Forward Rate = 2.6008/OMR Interest Rate…

Q: Currently, the spot exchange rate is $153E and the three-month forward exchange rate is $1.55/E The…

A: ANSWER A)INTEREST RATE  PARITY IS CURRENTLY WITHHOLDING     THE CORRECT ANSWER IS NO    EXPLANATION…

Q: Assume the exchange rate is 1.05 Swiss francs per U.S. dollar. How many U.S. dollars are needed to…

A: Given, 1 US Dollar = 1.05 Swiss Frans

Q: Assume that 1 U.S. dollar can be exchanged for 105 Japanese yen or for 0.80 euro.What is the…

A: Exchange rate the rate at which currency of one country can be exchanged for other currency. These…

Q: Suppose that the quote for Euro is 1.1120-44/EUR. If you want to buy 259, which of the following is…

A: The quote for Euro 1.1120-44/EUR  represents the bid-ask spread whereby the bid is 1.1120 and the…

Q: If the direct exchange rate of the euro is worth $0.685, what is indirect rate of the euro?note…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Suppose the current USD/euro exchange rate is 1.2000 dollars per euro. The six-month forward…

A: Exchange rate (ER) is a value at which two different currencies are exchanged or traded. To estimate…

Q: The spot rate is EURO1.9719/OMR. It is expected that EURO may appreciate by 1% after one month. What…

A: Please note that the information given in the question does not matches with the options given in…

Q: dollars

A: Introduction: The term exchange rate can be defined as a rate at which one currency will be…

Q: 5. On October 25 2015, one Euro traded for 1.106 US dollars, and thus one US dollar traded for 0.942…

A: The equilibrium graph shows the relation between the supply and demand of both the currencies.  The…

Q: If the exchange rate is such that $1 equals 5 euros, then the price of a euro is $5 $1 $0.40 $0.20

A: The exchange rate is the currency value of one country in term of the currency of another country.…

Q: On January 1, 2021, Euro and USD exchange rate was 1.23 USD/EUR. Today, the Euro exchange rate is…

A: A rate through which individuals or companies convert their domestic currency with the other…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.