first Q-

A German exporter will receive $ 10,000 after 7 months. The financial manager is negotiating with the bank to get it the soonest possible because he expected that the euro is going to depreciate.

Spot: 1.3223 USD/EUR

Forward 7 months: 1.3202 USD/EUR

Calculate the forward discount on EUR.

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SEC Q-

The Venezuelan government officially floated the Venezuelan bolivar (Bs) in February of 2002. Within weeks, its value had moved from the pre-float fix of 777 Bs /$ to Bs 1,022 Bs /$.

Calculate the depreciation(appreciation) percentage of BS against the US dollar