1.The following rates are quoted for C$ in terms of US dollar ($) and Australian dollar (A$) in New York:

$/C$ = 0.9650A$/$= 1.0250

(a)What are the (implied) quote for $ in terms of C$ and for A$ in terms of $ in the above rates?

(b)What is the cross rate for C$ in terms of A$ (A$/C$) implied in the above rates?

2.Suppose Dow Chemical receives quotes of $0.009369-71 for the yen and $0.03675-6 for the Taiwan dollar (NT$).

a.How many US$ will Dow Chemical receive from the sale of 50 million?

b.What is the US$ cost to Dow Chemical of buying 1 billion?

c.How many NT$ will Dow Chemical receive for US$500,000?

3. You see the following three month swap quote for C$:$0.9650-6020-25. Using this information, determine the three month outright forward rate for C$.

4.The Japanese yen () changed its price in terms of dollars from $0.0905 to $0.0915 in 30 days.

(a)What is the percentage change in the price of ?

(b)What is the implied percentage change in the price of US$?

(c)State these changes in annualized percentage.