Question
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%
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