Suppose it is January 1980 and the $/DM exchange rate is DM1 = $0.36 and the DM/FF exchange rate is FF1 = DM0.39. What is the FF/$ exchange rate? a . 4.886 French Frank per dollar b . 3.226 French Frank per dollar c . 8.129 French Frank per dollar d . 7.123 French Frank per dollar

Q: Suppose it is January 1980 and the USD/Deutsche Mark (DM) exchange rate is DM1 = 0.84 and the…

A: Given Information :USD/Deutsche Mark Exchange Rate DM1 = 0.84 Deutsche Mark/ French Franc Exchange…

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: Answer all questions below. a) In December 2005, the spot exchange rate for the British Pound was…

A: Forward exchange rate Forward exchange rate is calculated considering the covered interest parity…

Q: er annum in the U.S. and 5.7% per annum in the U.K. Assume that you can borrow £1,000,000 or its…

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Q: A Big Mac costs SFr6.50 in Switzerland and US$5.74 in the United States. If current spot rate is…

A: An exchange rate is how much it costs to exchange one currency for another. Exchange rates fluctuate…

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: Suppose that the Canadian dollar is worth A$1.08 and the United States dollar is worth A$1.35. (a)…

A:

Q: You need to convert some Swiss francs into euros (€). In addition to quoting the dollar/franc…

A: Exchange Rate ($/CHF) = $1.05/CHF Exchange Rate ($/∈) = $1.15/∈

Q: Suppose you long one Australian dollar call and one Australian dollar put with an exercise exchange…

A: a). Computation of the net call pay, net put pay and net combined pay:- Given Information:- Call…

Q: Suppose the current exchange rate is $1.77/E, the interest rate in the United States is 5.08%, the…

A: Here, To Find: Part a. Forward Exchange rate =? Part b. d1 and N1 =? Part c. d2 and N2 =? Part d.…

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

A: Exchange rate is the rate at which a person can exchange one currency for another. It can be direct…

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: Suppose one-year German Treasury bill pays 4.2% and one-year Canadian Treasury bill pays 2.94%. The…

A: Arbitrage profit is generated by buying and selling the same assets or portfolio at different prices…

Q: Suppose the exchange rate between U.S. dollars and the Swiss franc is SFr1.6 =$1 and the exchange…

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Q: Suppose Dassie Bank quoted the exchange rate of Singapore dollar in US$ at $0.60, the pound rate in…

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Q: Suppose that today the exchange rate between the U.S. dollar and the Chinese yuan is $1  = .12 yuan.…

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Q: 1)  Assume the following exchange rates are indirect quotes, what are the equivalent direct quotes…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Assume that the nominal exchange rate is equal to 10 Hong Kong dollar/British pound, the UK…

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Q: Given S(USD/AUD) = 0.7899, the price of a consumption basket in the US is$100 and the price of the…

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Q: The New Zealand dollar to U.S. dollar exchange rateis 1.38, and the British pound to U.S. dollar…

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Q: A printer costs C$160.00. Suppose the exchange rate changes from C$1 = £0.5821 to C$1 = £0.6071. a.…

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A: Given, $1 = 9.0 krona Pound 1 = 1.40$

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Q: Suppose that the one-year interest rate is 2.1% in Canada and 4.4% in Germany. The current exchange…

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Q: You see Japanese yen exchange rate as: 106.81 JPY/USD   Direct or Indirect Quote?   Convert $100…

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Q: dollars

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Q: If today 1 US Dollar can buy 3 Korean Won and 1 Korean Won can buy equals 2 Philippine Peso, what is…

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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.