EBK FOUNDATIONS OF FINANCE
10th Edition
ISBN: 9780134897288
Author: PETTY
Publisher: VST
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Chapter 16, Problem 4SP
Summary Introduction
To compute: Indirect quote for spot and forward of yen, Country S franc and Country C dollar contracts.
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Assume that USD is the home currency and exchange rates displayed in the market as INR 74.27-80/USD. Determine the Indirect Quote:
INR 00.01346-0.01336/USD
INR 74.27-74.80/USD
USD 0.01346-0.01336/INR
None of these
These are currency quotes found on a foreign market: GH 4.30/$, and GH 4.55/$.
Which currency is appreciating in value?
Cross rates:
a) Indirect dollar quotes for yen and pound are 100.2468-3579 and 1.3579-654, respectively. What is the indirect yen for pound cross rate?
b) Direct euro quotes for pound and Swiss franc are 1.2468-579 and 0.9876-13. What is the direct franc for pound cross rate?
c) Dollar is priced at 100.2468-3579 in Tokyo. Pound is priced at 1.1111-357 in New York. What is the direct yen for pound cross rate?
d) Euro is priced at 64.5982-7829 in Moscow. Pound is priced at 1.2468-579 in Frankfurt. What direct pound for ruble cross rate?
Chapter 16 Solutions
EBK FOUNDATIONS OF FINANCE
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - What is meant by arbitrage profits?Ch. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 1SP
Ch. 16 - Prob. 2SPCh. 16 - Prob. 3SPCh. 16 - Prob. 4SPCh. 16 - (Exchange rate arbitrage) You own 10,000. The...Ch. 16 - Prob. 6SPCh. 16 - Prob. 7SPCh. 16 - Prob. 8SPCh. 16 - Prob. 9SPCh. 16 - Prob. 10SPCh. 16 - Prob. 11SPCh. 16 - (Purchasing-power parity) Lets assume a McDonalds...Ch. 16 - Prob. 1MCCh. 16 - Prob. 2MCCh. 16 - Prob. 3MCCh. 16 - d. What are the differences among a forward...Ch. 16 - Prob. 5MCCh. 16 - Prob. 6MCCh. 16 - Selling Quotes for Foreign Currencies in New York...Ch. 16 - Prob. 8MCCh. 16 - Prob. 9MC
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