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5 . For this question, please pick any two currencies in the world other than the US Dollars. For each currency, look up its exchange
For this question, please pick any two currencies in the world other than the US Dollars. For each currency, look up its exchange rate against the US Dollars today write them as units of local currencies per US Dollar and the exchange rate from a year ago. Please also specify the dates you retrieve the data. a Report the exchange rates for both currencies. Compared with a year ago, which currency has depreciated against the US Dollar? Which currency has appreciated against the US Dollar? b Suppose a Big Mac costs $ to buy in the US Conver the price of a US Big Mac in the respective currencies youve chosen using the spot exchange rate today. c Based on the spot exchange rates today, calculate the cross rate between the currencies youve chosen. d Suppose the actual exchange rate between the currencies youve chosen is different from the cross rate from part c Write down a hypothetical situation where you can earn a riskless profit from arbitraging between the currencies.
For this question, please pick any two currencies in the world other than the US Dollars. For each currency, look up its exchange rate against the US Dollars today write them as units of local currencies per US Dollar and the exchange rate from a year ago. Please also specify the dates you retrieve the data.
a Report the exchange rates for both currencies. Compared with a year ago, which currency has depreciated against the US Dollar? Which currency has appreciated against the US Dollar?
b Suppose a Big Mac costs $ to buy in the US Conver the price of a US Big Mac in the respective currencies youve chosen using the spot exchange rate today.
c Based on the spot exchange rates today, calculate the cross rate between the currencies youve chosen.
d Suppose the actual exchange rate between the currencies youve chosen is different from the cross rate from part c Write down a hypothetical situation where you can earn a riskless profit from arbitraging between the currencies.
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