2.Suppose the spot exchange rate for the Canadian dollar is C$1.23 and the six-month forward rate is C$1.27.

a.What is worth more, a U.S. dollar or a Canadian dollar?

b.Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar?

3.Suppose the Japanese yen exchange rate is 106 = $1 and the British Pound exchange rate is 1 = $1.51.

a.What is the cross-rate in terms of yen per pound?

4.A trader observes that, in the spot exchange market, $1 can be exchanged for 9Mexican pesos or for 111.23 Japanese yen. What is the cross-rate between the yen and the peso, that is, how many yen would you receive for every peso exchanged?

5.You just returned from a trip to Venezuela and have 1,516 bolivares fuertes in your pocket. How many dollars will you receive when you exchange this money if the U.S. dollar equivalent of the bolivares fuertes is 0.465701?

6.If you have three thousand euros, how many dollars do you have given the following exchange rates?

Euro In U.S.$ - 1.3266 Per U.S. $- 0.7538

7.You can exchange $1 for either C$1.2381 or 100.37. What is the cross rate between the Canadian dollar and the Japanese yen?