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euro- c1-$1.25, 1-$2.00. Calculate the 8. Suppose you observe the following exchange rates: C1-S1 pound exchange rate. A. 1-1.60 B. 1#E0.625 C. 2.50-1 9. The

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euro- c1-$1.25, 1-$2.00. Calculate the 8. Suppose you observe the following exchange rates: C1-S1 pound exchange rate. A. 1-1.60 B. 1#E0.625 C. 2.50-1 9. The euro-pound cross exchange rate can be computed as: S(S/E) c. see- se/s) D. all of the above 10. The SF/S spot exchange rate is SF1.25/S and the 180 day forward exchange rate is SF1.30/S. The forward premium (discount) is B. C, D. the dollar is trading at an 8% premium to the Swiss franc for delivery in 180 days. the dollar is trading at a 4% premium to the Swiss franc for delivery in 180 days. the dollar is trading at an 8% discount to the Swiss franc for delivery in 180 days. the dollar is trading at a 4% discount to the Swiss franc for delivery in 180 days. 11. Suppose that the one-year interest rate is 3.0 percent in the Italy, the spot exchange rate is $1.20/, and the one-year forward exchange rate is $1.18/. What must in the United States if interest rate parity holds? B. . D. 1.2833% 1.0128% 4.75% None of the above

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