Suppose the exchange rate between the U.S. dollar and the Swedish kronawas 7.97 krona =$1, and the exchange rate between the dollar and the British pound was£1 = $1.29. What would be the exchange rate between Swedish kronas and pounds?

Q: The current exchange rate between the United States and Britan is $2.0 per pound. The 6- month…

A: Given, The exchange rate is $2.0 per pound The six month forward rate is $1.95 per pound Interest…

Q: The exchange rate between the British pound and the Australian dollar (GBP/AUD) is 0.4220, it means…

A: Exchange rate between the British pound and the Australian dollar (GBP/AUD) is 0.4220

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

A: Foreign currency exchange rates are rates used for exchange of one currency into another currency.…

Q: The spot rate of foreign exchange between Canada and the United Kingdom is CAD$1.75/£. If the…

A: The question is based on the concept of forward exchange calculation by use of interest rate parity…

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

A: Cross rate is the exchange rate between two countries’ currencies where direct exchange rate is not…

Q: A computer cost $1,300 in the United States. The same computer costs € 1,100 euros in Europe.…

A: The purchasing power parity( PPP) states that the cost of two identical goods will be the same in…

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: A currency trader observes that in the spot exchange market, 1.00 U.S. dollar can be exchanged for…

A: Here we have to find the cross exchange rate and we can do so by equating both Mexican pesos and the…

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

A: Here, Today's exchange rate: $1 = 0.12 yuan Next week's exchange rate: $1 = 0.20 yuan To Find: Yuan…

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: If the current exchange rate between the US and the UK is such that the current price of a pound is…

A: Given, 1 Pound = $1.20 US risk free rate = 2% UK risk free rate = 2.50%

Q: The interest rate in the United States is 4% and the exchange rate is $1 = €0.92, the euro is…

A: Interest rate parity refers to the theory which tells us that the interest rates differential or…

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

A: Nominal exchange rate = 10 Hongkong dollar/ British Pound UK inflation rate = 1% Hongkong inflation…

Q: A currency trader observes that in the spot exchange market, 1 U.S.dollar can be exchanged for 3.58…

A: The requirement is to calculate the cross exchange rate between the two currencies. To calculate the…

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

A: The foreign exchange rate or for-ex is the rate of exchanging currency between different countries…

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: Given the interest rates in the U.S. and Canada are similar, if the Canadian dollar is expected to…

A: The above statement can be understood with an example below. Let suppose the exchange rate 1 US…

Q: If there is, what would be the profit of the mispricing?

A: Information Provided: Japanese yen exchange rate is ¥122 = $1 British pound exchange rate is £1 =…

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: An exchange rate is the price of one country's currency expressed in another country's currency. The…

A: The exchange rates are stated as “Direct Quotation”.Justification: A direct quotation is the…

Q: When translating Acceletron’s fi nancial statements into US dollars, Redline is least likelyto use…

A: The question is based on the concept of translation, which is used a currency exchange value for…

Q: 1. Consider the exchange rate between U.S. Dollar and New Zealand Dollar: USD/NZD. If the exchange…

A: The total impact/increase in the exchange rate is the composite impact of real rate increase and…

Q: Do the following problems. You must show your work. d) You observe the following exchange rates in…

A:

Q: Suppose the exchange rate between the U.S. dollar and the Swedish krona was 9.0 krona = $1, and the…

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

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

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

Q: 23) If the Canadian dollar to U.S. dollar exchange rate is 1.35 and the British pound to U.S. dollar…

A: The value of one country's currency in terms of another country's currency is known as the exchange…

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

A: Information Provided: Canada interest rate = 2.1% Germany interest rate = 4.4% Exchange rate (Spot…

Q: Suppose that the following exchange rates are current: 1 US$ = 61.42 Indian Rupees, 1 Japanese Yen =…

A: Point Currency Rate Currency Equals Rate Currency A ₹/$ 1 $ = 61.42 ₹ B ₹/¥ 1 ¥ = 0.57 ₹ C ¥/$…

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

A: Cross exchange rate is used when there is no direct quotation available between two currencies.…

Q: Suppose the exchange rate between the U.S. dollar and the Swedish krona was 10.0 krona = $1, and the…

A: SEK/USD = 10 USD/GBP = 1.5

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.