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e) (5 points) Find future spot rate assuming the inflation rates will hold over the next several years. Currency Current Spot RPPP Bath E(Spot in
e) (5 points) Find future spot rate assuming the inflation rates will hold over the next several years. Currency Current Spot RPPP Bath E(Spot in 4 Year) Thai Bhat/s 26.0250 f) (5 points) Find future spot rate assuming that the interest rates do not change over the two-year horizon. Currency Current Spot IFE US $ E(Spot in 3 Year) Singapore $/$ 1.4200 2. (10 points) Swedish krona is quoted at 0.2074-80 in London. Pound is quoted at 5.0010-32 krona in Stockholm. Describe (which currency to buy/sell in which city for which price) and calculated max profitability or min loss rate. 3. (10 points) What is triangular arbitrage profit/loss from starting with $10 million. Swedish Krona per US$ US$ per Danish Krone Swedish Krona per Danish Krone 6.5500/6.5590 0.172265 / 0.172414 1.1310 / 1.1330 Page 1 of 2 703 words + 100% O Type here to search DE . q W 5 ENG 100% 11:31 AM 12/16/2020 e) (5 points) Find future spot rate assuming the inflation rates will hold over the next several years. Currency Current Spot RPPP Bath E(Spot in 4 Year) Thai Bhat/s 26.0250 f) (5 points) Find future spot rate assuming that the interest rates do not change over the two-year horizon. Currency Current Spot IFE US $ E(Spot in 3 Year) Singapore $/$ 1.4200 2. (10 points) Swedish krona is quoted at 0.2074-80 in London. Pound is quoted at 5.0010-32 krona in Stockholm. Describe (which currency to buy/sell in which city for which price) and calculated max profitability or min loss rate. 3. (10 points) What is triangular arbitrage profit/loss from starting with $10 million. Swedish Krona per US$ US$ per Danish Krone Swedish Krona per Danish Krone 6.5500/6.5590 0.172265 / 0.172414 1.1310 / 1.1330 Page 1 of 2 703 words + 100% O Type here to search DE . q W 5 ENG 100% 11:31 AM 12/16/2020
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