4. Currently, you can exchange $1 for 105 yen or 0.74 in New York. In Tokyo, the exchange rate is 1 = 0.0075. If you have $1,000, how much profit can you earn using triangle arbitrage?

	a.	$74.09
	b.	$84.05
	c.	$64.19
	d.	$76.12
	e.	$38.21

5.The spot rate on the Canadian dollar is 1.24. Interest rates in Canada are expected to average 2.8% while they are anticipated to be 3.1% in the U.S. What is the expected exchange rate five years from now?

	a.	1.16
	b.	1.24
	c.	1.25
	d.	1.20
	e.	1.22

6.

A U.S. firm has total assets valued at 125,000 located in Germany. This valuation did not change from last year. Last year, the exchange rate was 1.1 = $1. Today, the exchange rate is 0.8 = $1. By what amount did these assets change in value on the firm s U.S. financial statements?

	a.	$43,318.17
	b.	$42,613.64
	c.	$42,024.43
	d.	$44,200.16
	e.	$41,666.67