1. Go to the Yahoo! site for exchange rate data (finance.yahoo.com/currency).

a. What is the prevailing direct exchange rate of the Japanese yen?

b. What is the prevailing direct exchange rate of the euro?

c. Based on your answers to questions a and b, show how to determine the number of yen per euro.

d. One euro is equal to how many yen according to the table in Yahoo!?

e. Based on your answer to question d, show how to determine how many euros are equal to one Japanese yen.

f. Click on the euro in the first column in order to generate a historical trend of the direct exchange rate of the euro. Click on 5y to review the euros exchange rate over the last 5 years. Briefly explain this trend (whether it is mostly upward or down- ward), and the point(s)at which there was an abrupt shift in the opposite direction.

g. Click on the euro in the column heading in order to generate a historical trend of the indirect exchange rate of the euro. Click on 5y to review the euros exchange rate over the last 5 years. Briefly explain this trend, and the point(s) at which there was an abrupt shift in the opposite direction. How does this trend of the indirect exchange rate compare to the trend of the direct exchange rate?

h. Based on the historical trend of the direct exchange rate of the euro, what is the approximate percentage change in the euro over the last full year?

i. Just above the foreign exchange table in Yahoo!, there is a currency converter. Use this table to convert euros into Canadian dollars. A historical trend is pro- vided. Explain whether the euro generally appreciated or depreciated against the Canadian dollar over this period.

j. Notice from the currency converter that bid and ask exchange rates are provided. What is the percentage bid/ask spread based on the information?