First: Foreign Exchange Rates 1) Cross rates WITHOUT transactions cost: The S/DM exchange rate is DMI S0.35 and the DM/FF exchange rate is FFI = DM 0.31. What is the FFS exchange rate? a) 3.226 French francs per dollar b) 1.129 French francs per dollar c) 0.886 French francs per dollar d) 9.217 French francs per dollar 2) Cros rates WITISI transaction costs Suppose the following spot direct quotess *for the Swedish krona is $0.1395-99/Krona and; * for the French franc is $0.1130-33/Franc. What is the direct quote for the Krona in Paris (i.e., Franc/Krona exchange rate)? a) 1.2312-81 b) 1.2435-37 c) 0.0806-11 d) 0.0973-81 3) Suppose the quote for DM is DM 2.9865-92. Then the percent (Bid-Ask) spread is a) 2.31% b) 0.97% c) 0.62% d) 0.09% 4) During 1995, the yen went from $0.0125/Yen to $0.0095238/Yen. By how much did the dollar appreciate against the yen? a) 23.81% b) 31.25% c) 15.67% d) 40.78%