Question
Foreign currency analysis of a company Situation: Euro, Renminbi and Yen are the most exposed to the company Provide the forecasts of the company using
Foreign currency analysis of a company
Situation: Euro, Renminbi and Yen are the most exposed to the company
Provide the forecasts of the company using purchasing power parity and international fisher effect approaches against the US dollar and explain how you can see from the each perspective of the PPP, IFE, and forward rate.
This is the exchange rate forecast (not sure if it's correct)
| Expected change in the USA value | ||||||
| EUR/USA | CNY/USA | JPY/USA | ||||
| IFE | 118.79% | 0.56% | 188.50% | |||
| PPP | 120.95% | 14.54% | 95.64% | |||
| Forward rate | 1.1817 | 0.1511 | 0.9384 | |||
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick, Ayako Yasuda
3rd Edition
1119490111, 978-1119490111
