Foreign Exchange Worksheet

1. For each currency listed below, list the Currency per U.S. $1:

Number	Currency	Currency per U.S. $1 01/01/202X	Currency per U.S. $1 XX/XX/202X	Change (%) Stronger/Weaker
1.	China (Yuan/Renminbi)
2.	Japan (Yen)
3.	Canada (Dollar)
4.	Germany (Euro)
5.	Brazil (Real)
6.	India (Rupee)
7.	Mexico (Peso)
8.	UK/Scotland (Pound)
9.	Colombia (Peso)
10.	Russia (Ruble)
11.	Swiss (Franc)
12.	Saudi Arabia (Riyal)
13.	Nigeria (Naira)
14.	Czech Republic (Koruna)
15.	Israel (Shekel)
16.	South Korea (Won)
17.	Bangladesh (Taka)
18.	Haiti (Gourde)

2. Currency appreciation and depreciation: for each of the currencies in #1 above:
   1. Since January 1, 202X, state whether the currency has appreciated or depreciated against the U.S. dollar
   2. Since January 1, 202X, calculate the % the currency appreciated or depreciated against the U.S. dollar

3. A Japanese auto company, Honda, placed a purchase order with a Chinese conglomerate to buy 10,000 tons of steel at a cost of 9,030,200 yuan. How many yen does Honda have to exchange in order to pay the bill in yuan?

4. A trader at a well-known investment bank, Morgan Stanley, has a Brazilian client who wants to invest in emerging markets. The trader suggests the purchase of Nigerian government-issued bonds. The current market price of one bond is 359,000 Nigerian naira. How many Brazilian real will it cost to purchase 750 Nigerian bonds?

5. If the Mexican peso depreciates 50% against the Canadian dollar over the next two months, what is the new peso-to-Canadian-dollar exchange rate? How much would the peso have to appreciate to get back to its original level?

6. Calculating the cost of a forward contract. A U.S. multinational (Google) hired an Indian consulting firm to upgrade its internal communications network. In six months when the contract is over, Google will need 75,400,000 Indian rupees to pay the consultants. The company needs to decide whether or not to it should enter into a forward contract to hedge its exchange rate risk.
   1. What is the Indian rupee spot rate?
   2. What is the Indian rupee 6-month forward rate?
   3. What will it cost Google if the company purchases the Indian rupee at the spot rate?
   4. What would it cost Google if it hedged its currency exposure by purchasing a 6-month forward contract ?

7. Explain a currency swap and give an example of how it would be used as a currency hedge.