Question
2. (ii) A Russian student is planning to go on a trip to Japan. He has 450,000 Russian rubles with him. In preparation for
2. (ii) A Russian student is planning to go on a trip to Japan. He has 450,000 Russian rubles with him. In preparation for the trip, the Russian student wants to exchange Russian rubles for Japanese yen. Suppose a money-changer quotes him the following exchange rates: Spot rate on rubles/US dollar Spot rate on yen/US dollar RUB30.96/USD JPY84.02/USD (a) Calculate the Russian ruble/Japanese rate. What is the Japanese yen/Russian ruble rate? (b) How many Japanese yen can the Russian student obtain for Russian rubles? (c) If the Russian ruble/Japanese rate falls to 0.3442, what the percentage change in the Russian ruble? How many Japanese yen will the student obtain now?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
978-0132743464
