Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello tutor, I am looking for your explanation behind these answer. Please be clear and show your working. Thank you 1) The price of

Hello tutor, I am looking for your explanation behind these answer. Please be clear and show your working. Thank you 

 

1) The price of Gatto Nero's shares increased from CHF 66.81 (per share) on
1/1/2022 to CHF 70.38 on 1/1/2023. Gatto Nero has about 1 million sharesoutstanding. During that period, the Swiss franc (CHF) appreciated from EUR
1.0/CHF to EUR 1.02/CHF. Based on this information, what was Gatto Nero's
economic exposure to the euro?
a. CHF 178.5 million
b. CHF -178.5 million
c. CHF 182.07 million
d. CHF -182.07 million
e. EUR 17.85 million
f. EUR -17.85 million
g. EUR 178.5 million
h. EUR -178.5 million
i. EUR 182.07 million
j. EUR -182.07 million

 

 

 

 

2) U.S. inflation is 3% and foreign inflation is 2%; e0=$1.2101/€; e1=$1.2400/€. Based
on these numbers:
a. the dollar has appreciated in nominal terms but has depreciated in real terms
b. the dollar has depreciated in nominal terms but has appreciated in real terms
c. the dollar has depreciated both in nominal and in real terms
d. the dollar has appreciated both in nominal and in real terms

 

 

3)Since 2/15/2022, the dollar increased from ARS 15.7/USD to ARS 19.9/USD.
Meanwhile, the Argentine stock market went down 9.9% as measured in
Argentine pesos (ARS). Based on this information, what has been the dollar
return on the Argentine stock market?
a. -39.3%
b. -28.92%
c. -13.29%
d. 9.68%
e. 39.3%

 

4)In the past year, Toyota Motor Company shares went from USD 182.35 to USD
144.04. At the same time, the exchange rate went from USD 1 = JPN 113.46 to
USD 1 = JPN 136.44. What is the total yen (JPN) return, in percent, on Toyota
stock for the year?
a. -125.26%
b. -21.01%
c. -5.01%
d. 0.50%
e. 20.25%
f. 50.37%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud examination

Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma

4th edition

538470844, 978-0538470841

More Books

Students also viewed these Finance questions

Question

-4 1 9. Let A = Find A-1, (A") and verify that (A")= (A-1)".

Answered: 1 week ago

Question

Why are depositions a powerful tool in obtaining information?

Answered: 1 week ago

Question

How can behavioral symptoms help in detecting fraud?

Answered: 1 week ago