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4. Exchange risk questions: (9 points total) Suppose that the exchange rate for Japanese Yen moves from 110 yen/$ to 112 yen/$. Did the yen
4. Exchange risk questions: (9 points total) Suppose that the exchange rate for Japanese Yen moves from 110 yen/$ to 112 yen/$. Did the yen strengthen or weaken against the dollar? a) strengthen b) weaken c) stayed the same cannot tell from this information e) dumb question - the Japanese Yen is a reptile that feeds on termites, not a currency Suppose the spot rate for the British Pound is 1.28 US Dollars (USD) per 1 British Pound (GBP) and the six month forward rate is 1.24 USD per 1 GBP. Which currency is expected to appreciate in value? a) GBP b) USD If your US-based company sells software, priced in Dollars, to a Japanese firm, what type of currency movement between Yen and US Dollars could cause you to lose sales
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