Question
1 Russian Ruble is currently trading at .12 Turkish Lira. 1 Mexican Peso is currently trading at .45 Turkish Lira. If triangular arbitrage holds, the
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1 Russian Ruble is currently trading at .12 Turkish Lira. 1 Mexican Peso is currently trading at .45 Turkish Lira. If triangular arbitrage holds, the current value of the Ruble in terms of the Peso is ____? (Round to the nearest 2 decimal points)
QUESTION 5
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You can purchase a share of stock in Thailand for 600 Thai Baht. The stock typically pays a 40 Baht per share dividend and you expect it will trade in 1 years time at 620 Baht.
Assume the current spot rate for 1 Canadian dollar is 25 Baht and the Canadian dollar is expected to fall to 20 Baht in a years time.
The expected net return on Thai stock (assuming it is sold ex-dividend) expressed in terms of Canadian dollars is ____%? (Round to the nearest 2 decimal points; e.g., 6.894921 is 6.89)
QUESTION 6
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You can purchase a share of stock in Chile for 21000 Pesos. The stock typically pays a 4000 Peso per share dividend and you expect it will trade in 1 years time at 22000 Pesos.
Assume the current spot rate for 1 US dollar is 700 Peso and the dollar is expected to rise to 750 Pesos in a years time.
The expected net return on Chilian stock (assuming it is sold ex-dividend) expressed in terms of US dollars is ____%? (Round to the nearest 2 decimal points; e.g., 6.894921 is 6.89)
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