Q: A= P(1 + rt) A= $2,030; P = $1,750; t= 4 years Find R?
A: Here, A is $2,030 P is $1,750 t is 4 years
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A U.S. company has committed to pay 10 million kronor to a Swedish company in one year. What is the cost (in present value) of covering this liability by buying kronor forward? The Swedish interest rate is 1.2%,
Exchnage rate is in the table
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- Ay 1. Imagine you observe the following situation. Would you expect this situation to change? Why? i(euro zone)= 1% per annum i(Sweden)=0.9% per annum S(€/SEK)=0.1 F(1 year, €/SEK)=0.106The TRY (Turkish lira) against USD spot exchange rate is TRY1.79620= 1 USD and 4 month’s forward rate is quoted as TYR 1.62310 = 1 USD. Determine which country is at forward premium and which is forward discount?The one-year forward rate for the Swiss franc is SF1.1505/$. The spot rate is SF1.1626/$. The interest rate on a risk-free asset in Switzerland is 2.71 percent. If interest rate parity exists, what is the one-year risk-free rate in the U.S.? Multiple Choice 1.64% 3.32% 3.55% 3.03% 3.79%
- You are given the following information:Spot exchange rate (AUD/EUR) 1.60One-year forward rate (AUD/EUR) 1.62One-year interest rate on the Australian dollar 8.5%One-year interest rate on the euro 6.5%(a) Is there any violation of CIP?(b) Calculate the covered margin (going short on the AUD).(c) Calculate the interest parity forward rate and compare it with the actual forward rate.If spot rate is USD 2.5968/OMR and interst rate for OMR is 5% per annum . One year forward exchange rate is USD 2.5960/OMR . If interst rate parity holds and USD is home currency then calculate the interst for USD? 4.9675% 5.0323% 0.050323% 0.049676%A newspaper provides spot exchange rate of $1 = £.7555 and 1-year forward rate of $1=£.7755. You’ll also need to use the additional information provided in the problems. Jay has Euro 1,000 wishes to trade out of euro and into Pound. The USD-Euro exchange rate is quoted as $1.30 = Euro1.00. How much Pound will the customer get, 2 decimal places?
- How to get the ans -1,874 basis points? pls explain with steps shown clearly Spot exchange rate (AUD/USD) 1.7624/1.7864 Six- month expected spot rate (AUD/USD) 1.4880/1.5120; Australian six-month interest rate 4.55/5.05% pa US six-month interest rate 1.18/1.68% pa Calculate the precise outward uncovered margin from an Australian perspective.On January 1, 2021, Euro and USD exchange rate was 1.23 USD/EUR. Today, the Euro exchange rate is 0.83 EUR/USD. Can you tell if EUR has appreciated or depreciated relative to USD from January 1 to today? How much is the change in Euro currency value relative to USD? A.Euro has appreciated 32% relative to USD. B.Euro has depreciated 2% relative to USD. C.Euro has depreciated 32% relative to USD. D.Euro has appreciated 2% relative to USD.In April 2018, the exchange rate between the U.S. Dollar and the euro is 1 euro = $ 1.21. If in the following months, inflation in the euro zone is lower than the inflation in the U.S., then (other things equal) a possible exchange rate would be: 1 euro = $1 1 euro = $1.6 1 euro = $0.94