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Answer the following questions: 1. The exchange rate of Swiss Franc is $1.12/SF, the exchange rate of euro is $1.25/euro and the exchange rate between
Answer the following questions: 1. The exchange rate of Swiss Franc is $1.12/SF, the exchange rate of euro is $1.25/euro and the exchange rate between Japanese yen and US dollar is yen 120/$. a. What is the cross exchange rate of yen with respect to Swiss franc? b. What is the cross exchange rate of Swiss franc with respect to euro? c. What is the cross exchange rate of yen with respect to euro? 2. The ABC Company's share (based in Mexico) is priced at 800 peso per share. The spot rate of the peso is $0.069. You expect that the stock price of ABC Company will increase by 10% next year. You also expect that the Mexican peso will depreciate against the U.S. dollar by 5% during the next year. You bought 100 American depository receipts (ADRs) that represent ABC stock. Each share that you own represents one share of the stock traded on the Mexican stock exchange. ABC company paid a dividend of 25 peso per share before you sold the share at the end of the year. What is the US dollar cash you will receive after one year? What is your rate of return in peso? What is your rate of return in dollar? Show detail calculations to receive credit. If you do the assignment in excel it will be easier to show the calculations. If you write in word, you will need to write down each step of calculations
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