Use Figure 30.1 to answer the following questions: (a) What is the cross-rate in terms of Rwandan
Question:
Use Figure 30.1 to answer the following questions:
(a) What is the cross-rate in terms of Rwandan franc per Thai baht?
(b) Suppose the cross-rate is 12 Rwandan franc = 1 Thai baht. Is there an arbitrage opportunity here? If there is, explain how to take advantage of the mispricing.
Figure 30.1
Transcribed Image Text:
Apr 7 Pakistan Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Is Poland Portugal Puerto Rico Qatar Reunion is de la Romania Russia Rwanda San Marino Sao Tome Saudi Arabia St Christopher St Helena St Lucia St Pierre & Miquelon St Vincent Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Is Somali Rep South Africa Spain Spanish Ports N Af Sri Lanka Sudan Rep Surinam Swaziland Sweden Switzerland Taiwan Tanzania Thailand Togo Rep Tonga Is Trinidad & Tobago Tunisia Turkey Turkmenistan Turks & Caicos Tuvalu Uganda Ukraine UAE United Kingdom United States Currency (Pak Rupee) (Balboa) (King) (Guarani) Uruguay Uzbekistan (New Sol) (Peso) (Sterling ) (Zloty) (Euro) (US $) (Riyal) (Euro) (New Leu) (Rouble) (Fr) (E Carib $) (E) (E Carib $) (Euro) (E Carib $) (5) (Euro) (Euro) (5) 4.0160 10000 4.0160 13696 4.0160 (Euro) 13696 (Dobra) 32529.6366 (Riyal) 5.5796 (CFA Fr) 898.3716 (Dinar) 164.2843 (Rupee) 19.9313 6477.6699 (Leone) 2.0212 13696 13696 (Shilling) (Rand) (Euro) (Euro) (Rupee) (E) (Dollar) (Lilangeni) (Krona) (Fr) (5) (Shilling) (Baht) (CFA Fr) (Pa'angal (5) (Dinar) (New Lira) (New Manat) (US $) (Australian $) POUND Closing Mid (E) (5) 1516042 1.4874 3.9840 7189.5636 4.6072 66.1600 10000 5.5387 1.3696 14874 5.4150 (Peso Uruguay) 11.3696 60487 817406 1028.5434 197.8998 8.8159 4.9084 17.5886 12.8381 1.4312 46.1536 2759.1444 48.4449 898.3716 (New Shilling) 4447.3540 (Hryvnia) (Dirham) Day's Change -10744 -0.0102 0.0122 0.0522 -1.3569 11.5842 11.8993 -10065069 17.5886 1.3696 1.3696 -0.0274 -58.6778 48336150 -0.0190 3.0975 -0.3210 44.4800 06723 0.0144 3.7237 0.0122 -0.0102 -0.0372 0.0122 0.0122 -0.0526 DOLLAR Closing Mid 0.0630 0.0122 0.0122 -15131 0.0667 -0.0338 0:0630 0.1344 0.0077 2.9992 -0.0203 9.4763 -0.0653 2.8993 0.0126 3.8522 0.0118 4.9828 -0.0343 14874 -0.0102 1.9437 -0.0105 3.7513 7.9940 603.9842 110.4500 13.4000 -29.6499 4355.0000 13094 -0.0774 -0.0007 101.9250 -0.0200 110.6954 10000 10860 2.6785 2.9089 59.6837 -3.3417 6915000 2.5000 751.0019 -0.0277 -0.0277 0.0122 0.9208 0.0144 -0.0277 2.7000 0.0122 0.9208 -1567092 21870.0000 -0.0384 0.9208 0.0144 4.0666 0.0627 54.9550 -0.5300 2.7000 06723 0.0046 2.7000 13589 0.9208 0.9208 7.7882 0.0351 4.0441 -0.0257 0.9208 0.0144 10000 10000 -00173 10860 0.0001 3.9538 -0.0629 36406 10000 4.4165 -0.0012 Day's Change 5.9270 3.3000 8.0000-672.0000 118250 8.6312 09622 -06130 -19.0085 1855.0000 -0.2139 32.5700 7.9940 603.9842 118250 0.1230 0.9208 0.0144 0.9208 0.0744 -6.1050 5249.5367 0.0085 33640 0.0900 48.3074 19828 6.3710 19492 2.5899 3:3500 10000 1.3068 34.9913 23.5250 5.4633 36731 10000 06723 14874 -0.0102 10000 38.0851 -0,4121 25.6050 (Sum) 3712.8111 -25.5793 2496.1600 EURO -45.6165 2990.0000 -0.1287 -0.0376 Closing Mid -90.3754 4017.4667 -50.2086 -0.0442 2.5745 -0.0217 -0.6704 36.9696 -0.3392 0.0046 0.7302 -0.0066 0.5588 -0.0024 3.0950 -0.0052 0.7653 0.0035 0.8312 -0.0093 30258 -0.0339 0.7653 0.0035 3.3800 0.0148 -15357 45.6759 -0.9580 -9.2069 574.7413 -4.3476 133.0500 -0.1000 144.4986 0.0851 2.9323 -0.0467 2.2441 -0.0252 0.7302 -0.0066 0.5588 -0.0024 2.2441 -0.0252 2.9323 -0.0467 10000 0.7653 0.0035 2.2441 -0.0252 2.9323 -0.0467 0.0144 10000 0.7653 0.0035 45.0000 237518599 -328.7730 18177.2846 -166.1344 4.0740 -0.0649 3.1179 -0.0350 9.4702 655.9556 -0.0020 502.0024 2.3268 -0.1127 91.8007 0.3399 16300 119.9540 0.0400 14.5530 -0.1877 11.1374 -0.0913 10.0000 4729.7380 -64.3235 3619.6651 -32.2092 0.0088 11295 -0.0053 0.0144 0.7653 0.014 0.7653 0.0182 Day's Change 0.0217 0.0256 0.0046 14758 -0.0138 10000 10000 8.4583 -0.1147 8.6884-7415902 0.1230 12.8425 0.1488 9.3739 0.0117 31.0295 -0.1970 33.6995 -0.7543 -1.7857 84.7151 -0.9673 -0.0173 08312 -0.0093 -0.0463 2.2262 -0.0250 12.8425 -0.0699 10000 10000 6.4370 3.5840 YEN (x100) Day's Mid Change Closing 0.0035 0.0035 6.4731 -0.0574 6.6492-564.8754 9.8284 -0.0069 0.7653 0.7653 -2.4125 110.5847 -0.0087 4.9262 -0.571 2.7428 -0.0689 0.0035 0.0035 -13248 0.0163 -0.0308 9.8284 -0.0069 0.0148 7.1738 0.0446 10450 -0.0037 0.7997 0.0009 25.7902 -0.4549 2014.6185 -32.0974 15417861 -17.2994 0.0800 35.3726 -0.4753 27.0706 -0.2365 9.4702 655.9556 -0.0020 502.0024 2.3268 2.1534 -0.0343 16480 -0.0185 6.91192 -0.1102 5.2953 -0.0594 2.1169 -0.0097 16201 0.0001 2.8128 -0.0166 2.1526 -0.0026 3.6383 -0.0580 2.7844 -0.0312 10860 -0.0173 08312 -0.0093 14192 -0.0204 10861 -0.0105 -10.0000 3247.2825 -62.7712 2485.1432 -36.2890 0.0750 25.5493 -0.3243 19.5528 -0.1564 3.9891 -0.0636 3.0529 -0.0343 0.7302 -0.0066 10860 0.0020 -0.1000 27.8082 -0.0173 -0.5534 -43.1913 20746873 -23.2788 2710.9491 0.5588 -0.0024 0.8312 -0.0093 212816 -0.3228
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 0% (2 reviews)
Answered By
Solomon Imasuen
I have experience in teaching undergraduate as well as post graduate students of Science and Commerce faculties. I have taught the subjects like Business statistics, Descriptive statistics, Inference, Actuarial Statistics, Probability Distribution, Distribution theory, etc.
0.00
0 Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
Question Posted:
Students also viewed these Business questions
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Ann Carter, Chief Financial Officer of Consolidated Electric Company (Con El), must make a recommendation to Con Els board of directors regarding the firms dividend policy. Con El owns two...
-
Use a spreadsheet like that in Figure 19.2 to answer the following questions about Yummy Food: a. What would be required external financing each year if the growth rate is 15% and the dividend payout...
-
Why are services important? Why is manufacturing important? What are nonmanufactured goods?
-
Sam has planned a one-day fishing trip in Alaska. He intends to fish off Rocky Point, where he fished last year. Because he caught five fish in a one-day outing last year, Sam concludes that he will...
-
The ratio of hybrid cars to gasoline-powered cars in the parking lot of a local office building is 3:11. If there are 280 cars in the lot and one is to be selected at random to get the reserved...
-
Estimated cost and operating data for three companies for the upcoming year follow: Predetermined overhead rates are computed using the following bases in the three companies: Required: 1. Compute...
-
A scheme for concurrently heating separate water and air streams involves passing them through and over an array of tubes, respectively, while the tube wall is heated electrically. To enhance...
-
You are working on your firms fifth audit of SSC. The previous audits have all resulted in standard unqualified audit reports. Read the following write-up from your audit files concerning SSC and its...
-
Use Figure 30.1 to answer the following question. Suppose interest rate parity holds, and the current annual risk-free rate in the Eurozone is 3.8 per cent. Assume the UK one year forward rate is...
-
Suppose the spot exchange rate for the South African rand is R15/ and the 6-month forward rate is R16/. (a) Which is worth more, the British pound or South African rand? (b) Assuming absolute PPP...
-
Why are the legal procedures related to mergers so onerous?
-
Stock A's returns over the past ten years have been: 10.0%, 8.0%, 12.0%, (5.0%), 10.0%, 12.0%, 10.0%, (4.0%), 8.0%, 9.0%. a) What is the mean of Stock A's return over the past 10 years? b) What is...
-
A certain brand of laundry detergent is manufactured for 5.80 and then marked up 35% by the local store before selling. The store offers a 15% discount with purchase of three or more bottles of the...
-
A company provided the following information regarding its only product: Sale price per unit Direct materials used $50 $160,000 Direct labor incurred $185,000 Variable manufacturing overhead $120,000...
-
Show how the given percentage was derived based on the sample data. Write 1-2 sentences explaining how the confidence interval would be interpreted. Based on this interval, provide one value that...
-
1. Inn at Penn has 200 rooms. For regular-fare customers, rooms are priced at $300 per night while the rooms are priced at $700 per night for the high-paying customers who generally arrive at the...
-
On January 1, Seneca Asset Management enters into a contract with a client to provide fund management services for one year. The client is required to pay a fixed amount of $100,000 at the end of...
-
Use the T account for Cash below to record the portion of each of the following transactions, if any that affect cash. How do these transactions affect the companys liquidity? Jan. 2 Provided...
-
Suppose you are considering renting an apartment. You, the renter, can be viewed as an agent while the company that owns the apartment can be viewed as the principal. What agency conflicts do you...
-
You are the CEO of a company and you are considering entering into an agreement to have your company buy another company. You think the price might be too high, but you will be the CEO of the...
-
What is the difference between a public and a private corporation?
-
Boris needs to make a total of 50 deliveries this week. So far he has completed 28 of them. What percentage of deliveries has Boris completed? % X
-
QUESTION 1 1- (Operating Lease for Lessee and Lessor) On February 20, 2017, Barbara Brent Inc. purchased a machine for $1,500,000 for the purpose of leasing it. The machine is expected to have a...
-
The standard quantity of materials for a product was 58 pounds per unit at the standard price of $30 per pound. The actual price per pound of materials was $26.25, and the actual quantity used was 68...
Study smarter with the SolutionInn App