Using Exhibit 5.7, calculate the one-, three-, and six-month forward premium or discount for the Japanese yen
Question:
Using Exhibit 5.7, calculate the one-, three-, and six-month forward premium or discount for the Japanese yen versus the U.S. dollar using American term quotations. For simplicity, assume each month has 30 days. What is the interpretation of your results?
Transcribed Image Text:
EXHIBIT 5.7 Currencies April 3, 2019 U.S.-dollar foreign-exchange rates in late New York trading Country/Currency Americas Argentina peso Brazil real Canada dollar Chile peso Colombia peso Ecuador US dollar Mexico peso Peru new sol Uruguay peso Asia-Pacific Australian dollar 1-mos forward 3-mos forward 6-mos forward China yuan Hong Kong dollar India rupee Indonesia rupiah Japan yen 1-mos forward 3-mos forward 6-mos forward Malaysia ringgit New Zealand dollar Exchange Rates Pakistan rupee Philippines peso Singapore dollar South Korea won Taiwan dollar In US$ - 0233 2583 .7493 .001500 .000320 1 .0520 .3034 .02965 .7113 .7117 .7125 .7139 .1490 .1274 .01461 .0000703 .00897 .00899 .00903 .00910 2452 .6778 .00709 .0192 .7387 .0008814 .03246 Wed Per US$ 42.854 3.8715 1.3345 666.73 3123.6 1 19.220 3.296 33.4300 1.4060 1.4051 1.4035 1.4008 6.7114 7.8494 68.425 14223 111.49 111.22 110.70 109.90 4.0790 1.4753 140.47 52.124 1.3537 1134.5 30.812 Country/Currency Thailand baht Vietnam dong Europe Czech Rep. koruna Denmark krone Euro area euro 1-mos forward 3-mos forward 6-mos forward Hungary forint Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc 1-mos forward 3-mos forward 6-mos forward Turkey lira UK pound 1-mos forward 3-mos forward 6-mos forward Middle East/Africa Bahrain dinar Egypt pound Israel shekel Jordan dinar Kuwait dinar Lebanon pound Saudi Arabia riyal South Africa rand UAE dirham In US$ .03150 .00004 .04372 .1505 1.1233 1.1262 1.1319 1.1407 .00351 .1167 .2619 .01533 .1079 1.0018 1.0047 1.0104 1.0193 .1778 1.3158 1.3180 1.3218 1.3277 2.6526 .0577 2777 1.4104 3.2854 .00066 .2666 .0707 2723 Wed Per US$ 31.748 23146.3 22.874 6.6457 .8903 .8880 .8835 .8767 284.71 8.5728 3.8183 65.241 9.2695 .9982 .9953 .9897 .9811 5.6248 .7600 .7588 .7565 .7532 .3770 17.325 3.6016 .7090 .3044 1507.50 3.7504 14.146 3.6730
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 0% (3 reviews)
The formula we want to use is The pattern of forward premiums indicates that the Japa...View the full answer
Answered By
Jonas Araujo
I have recently received the degree of PhD. In Physics by the Universidade Federal do Maranhão after spending a term in Durham University, as I have been awarded a scholarship from a Brazilian mobility program. During my PhD. I have performed research mainly in Theoretical Physics and published works in distinguished Journals (check my ORCID: https://orcid.org/0000-0002-4324-1184).
During my BSc. I have been awarded a scholarship to study for a year in the University of Evansville, where I have worked in detection-analysis of photon correlations in the the Photonics Laboratory. There I was a tutor in Electromagnetism, Classical Mechanics and Calculus for most of that year (2012).
I am very dedicated, honest and a fast learner, but most of all, I value a job well done.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Using Exhibit 5.4, calculate the one-, three-, and six-month forward premium or discount for the Canadian dollar versus the U.S. dollar using American term quotations. For simplicity, assume each...
-
Using Exhibit 5.4, calculate the one-, three-, and six-month forward premium or discount for the U.S. dollar versus the British pound using European term quotations. For simplicity, assume each month...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Define a passive portfolio construction strategy and briefly discuss how reasonable it might be for an investor to pursue a passive strategy. Explain the role of risk aversion in the construction of...
-
Lixun Zhang has prepared the following list of statements about accounts. 1. An account is an accounting record of either a specific asset or a specific liability. 2. An account shows only increases,...
-
Determine the ampacity rating of each of the 12 #4 THW (Cu) conductors placed in the same conduit.
-
The following are the attributes of an independent auditor, except: (a) To be independent an auditor must be without bias with respect to the client since otherwise, he would lack that impartiality...
-
At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following: Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $...
-
Atlantis Company issued bonds on January 1, 2006. The bonds had a coupon rate of 5.0%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2036....
-
Lured by extremely low labor costs in Bangladesh, many MNCs in the so-called fast-fashion business, including H&M, Inditex, parent of the popular Zara brand, Marks&Spencer, and Gap, are heavily...
-
In Sec. 14.4, we introduced the notion of a laminar boundary layer by analyzing flow past a thin plate. Now suppose that this same plate is maintained at a different temperature from the free flow. A...
-
Let V be as defined in Eq. (9.7.4). We wish to determine the size 0 likelihood ratio test of the hypotheses (9.7.7). Prove that the likelihood ratio test will reject H0 if either V c1 or V c2,...
-
A diner serves a stack of potato slices that is 2 . 8 centimeters tall. The thickness of a potato slice is 0 . 3 5 centimeters. How many potato slices are in the stack?
-
Direct Labor, Overhead, And Direct Material costs Total direct labor $1,000,000 Total overhead $2,000,000 Overhead rate 200% of direct labor Widgets direct labor $100,000 Gadgets direct labor...
-
Solve, assume atd voriable are ???? ???? = ???? ???? - 4 , for ????
-
San Francisco is approximately 1 0 , 0 0 0 km from Tokyo. The Japan Trench is gobbling up crust at the rate of 3 cm a year. How many years will it take until San Francisco collides with Tokyo?
-
Solve by factoring. 10x-11x-6=0
-
According to the Bureau of Transportation Statistics, due to an increase in demand, the average domestic airline fare increased from $319.85 in the fourth quarter of 2009 to $328.12 in the first...
-
Describe a job you have had in the past or a job you are very familiar with. Indicate the negative aspects of the job and how it could be improved with current human resource management techniques.
-
There are arguments for and against the alternative exchange rate regimes. a. List the advantages of the flexible exchange rate regime. b. Criticize the flexible exchange rate regime from the...
-
When the euro was introduced in January 1999, the United Kingdom was conspicuously absent from the list of European countries adopting the common currency. Although the previous Labour government led...
-
Mexico experienced large-scale trade deficits, depletion of foreign reserve holdings, and a major currency devaluation in December 1994, followed by the decision to freely float the peso. These...
-
Value is usually created when _ _ _ _ _ _ _ _ . the end user enjoys direct pleasure and satisfaction from a company s product a company survives but has no real competitive advantage over rivals a...
-
In exponential smoothing, an alpha of . 3 0 will cause a forecast to react more quickly to a large error than will an alpha of . 2 0 Question 1 3 options: True False
-
Elm Grove Enterprises uses a periodic inventory system. It entered into the following purchases and sales transactions for July. Date Activities Units Acquired at Cost Units Sold at Retail Jul. 1...
Study smarter with the SolutionInn App