1 Page 2 Question 10 (1 point) If the USA has inflation of 2% and the UK has inflation of 3%, what should the approximate interest rate differential be? (Enter your answer as a whole number with no symbols. For example, if you compute 1%, enter "1") 2 Your Answer: Page 3: 3 Answer Page 4 Previous Page Next Page Page 10 of 30 Submit Que of 30 wions saved ADI LON Type here to search BI Page 1 Previous Page Next Page Page 11 of 30 1 Page 2 2. Question 11 (1 point) Using the data below, calculate the 180 day forward discount for the Canadian dollar. Express the discount as a negative percentage. Here are the relevant rates for the Canadian dollar. Spot: C$1 - $1.0092 30 day forward: C$1 - $1.0086 90 day forward: C$1 - $1.0073 180 day forward: C$1 - $1.0068 (Enter your answer as a whole number with no symbols. For example, if you compute -1.23%, enter - 1.23") Page 3 3 Page 4 Your Answer: Answer 110 ZW07/2008 HE o 0 Type here to search 1 Page 2: Question 12 (1 point) If a Big Mac costs 1.98 in the UK and $3.46 in the USA and the actual exchange rate is 0.50/$ at that time, by what % does PPP (Purchasing Power Parity) suggest the pound is overvalued? (enter your answer as a whole number without the percent sign. For example, if you compute 1.23%, enter "1.23") 2 Page 3: Your Answer: 3 Page 4 Answer Previous Page Next Page Page 12 of 30 Submit qui O of 30 questions surved 0 Type here to search ADING TOS 2101/2000 1 Page 2 Question 10 (1 point) If the USA has inflation of 2% and the UK has inflation of 3%, what should the approximate interest rate differential be? (Enter your answer as a whole number with no symbols. For example, if you compute 1%, enter "1") 2 Your Answer: Page 3: 3 Answer Page 4 Previous Page Next Page Page 10 of 30 Submit Que of 30 wions saved ADI LON Type here to search BI Page 1 Previous Page Next Page Page 11 of 30 1 Page 2 2. Question 11 (1 point) Using the data below, calculate the 180 day forward discount for the Canadian dollar. Express the discount as a negative percentage. Here are the relevant rates for the Canadian dollar. Spot: C$1 - $1.0092 30 day forward: C$1 - $1.0086 90 day forward: C$1 - $1.0073 180 day forward: C$1 - $1.0068 (Enter your answer as a whole number with no symbols. For example, if you compute -1.23%, enter - 1.23") Page 3 3 Page 4 Your Answer: Answer 110 ZW07/2008 HE o 0 Type here to search 1 Page 2: Question 12 (1 point) If a Big Mac costs 1.98 in the UK and $3.46 in the USA and the actual exchange rate is 0.50/$ at that time, by what % does PPP (Purchasing Power Parity) suggest the pound is overvalued? (enter your answer as a whole number without the percent sign. For example, if you compute 1.23%, enter "1.23") 2 Page 3: Your Answer: 3 Page 4 Answer Previous Page Next Page Page 12 of 30 Submit qui O of 30 questions surved 0 Type here to search ADING TOS 2101/2000
