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Explain and discuss the direct and indirect impact of economic exposure on a UK department store (seller of a wide range of items; clothes,
Explain and discuss the direct and indirect impact of economic exposure on a UK department store (seller of a wide range of items; clothes, gifts, toys, electrical goods, etc.) if there were an unexpected downward movement in the UK that was expected to last for some years. The department store has 80% of its stores in the UK and 20% of its stores in France An American company decide to invest $ 250 m in Jordan the current EXR is 0.75$/J the project start in 3 months for 6 months 3 month rate j =2% $= 3% 9 month rate j=4% $-5% 12 month j=6% $=7% Answer the following question 1. Which currency depreciate / appreciate 2. How many swop point 3. What is the American company loss/profit in the Jordanian market 4. Suppose that on settlement date the rate in Jordan is 3.5%and the rate in US market is 5% the swop differences is 25 points A) Explain what happen B) What would be the outcome for the American company
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