1- On July 15, 2016, you convert 660,000 U.S. dollars to Japanese yen in the spot foreign exchange market and purchase a six-month forward contract to convert yen into dollars. How much will you receive in U.S. dollars at the end of six months? Use the data in Table 91 for this problem. (Round your answer to 2 decimal places. (e.g., 32.16))

2- Bank USA recently purchased $11.4 million worth of euro-denominated one-year CDs that pay 10 percent interest annually. The current spot rate of U.S. dollars for euros is $1.104/1. a. Is Bank USA exposed to an appreciation or depreciation of the dollar relative to the euro? b. What will be the return on the one-year CD if the dollar appreciates relative to the euro such that the spot rate of U.S. dollars for euros at the end of the year is $1.004/1? (Round your answer to 3 decimal places. (e.g., 32.161)) c. What will be the return on the one-year CD if the dollar depreciates relative to the euro such that the spot rate of U.S. dollars for euros at the end of the year is $1.204/1? (Round your answer to 3 decimal places. (e.g., 32.161))

3- Citibank holds $43 million in foreign exchange assets and $38 million in foreign exchange liabilities. Citibank also conducted foreign currency trading activity in which it bought $8 million in foreign exchange contracts and sold $15 million in foreign exchange contracts. a. What is Citibanks net foreign assets? (Enter your answer in millions.) b. What is Citibanks net foreign exchange bought? (Enter your answer in millions. Negative amount should be indicated by a minus sign.) c. What is Citibanks net foreign exposure? (Enter your answer in millions. Negative amount should be indicated by a minus sign.)

4- P.J. Chase Stanley Bank holds $94 million in foreign exchange assets and $87 million in foreign exchange liabilities. P.J. Chase Stanley also conducted foreign currency trading activity in which it bought $184 million in foreign exchange contracts and sold $150 million in foreign exchange contracts. a. What is P.J. Chase Stanleys net foreign assets? b. What is P.J. Chase Stanleys net foreign exchange bought? c. What is P.J. Chase Stanleys net foreign exposure? (For all requirements, enter your answers in millions.)

5- If the interest rate in the United Kingdom is 5 percent, the interest rate in the United States is 9 percent, the spot exchange rate is $1.75/1, and interest rate parity holds, what must be the one-year forward exchange rate? (Do not round intermediate calculations. Round your answer to 4 decimal places. (e.g., 32.1616))

6- A bundle of goods in Japan costs 3,265,400 while the same goods and services cost $32,000 in the United States. a. If purchasing power parity holds, what is the current exchange rate of U.S. dollars for yen? b. If, over the next year, inflation is 10 percent in Japan and 9 percent in the United States, what will the goods cost next year? c. Will the dollar depreciate or appreciate relative to the yen over this time period?