Answer the questions as specified in the directions in the excel file.

The text book is called Fundamentals of Corporate Finance , 11 th Edition ( Author Stephen Ross; Randolph Westerfield; Bradford Jordan)

If you just type in numbers as answers, you need to show how they were calculated. If answers are determined using excel functions, that is sufficient to demonstrate how they were calculated. No response to a question will receive zero credit. If you at least attemp a solution, you may receive partial cr Cross-Rates and Arbitrage [LO1] Suppose the Japanese yen exchange rate is 110 = $1, and the British pound exchange rate is 1 = $1.75. Ch21-1a What is the cross-rate in terms of yen per pound? Suppose the cross-rate is 190 = 1. Is there an arbitrage Ch21-1b opportunity here? If there is, explain how to take advantage of the mispricing and Ch21-1c the potential arbitrage profit. Ch21-1d What is your arbitrage profit per dollar used? Interest Rates and Arbitrage [LO2] The treasurer of a major U.S. firm has $20 million to invest for three months. in the United States is 0.28 percent per month. The interest rate in Great Britain is 0.33 percent per month. The rate is 0.545, and the three-month forward rate is 0.547. Ch21-2a What will the treasurer's balance be (in dollars) after three months if he invests in the US? Ch21-2b What will the treasurer's balance be (in dollars) after three months if he invests in the UK? w they were calculated. you may receive partial credit. rate is 1 = $1.75. o invest for three months. The interest rate 3 percent per month. The spot exchange e US? e UK