I need help with 4-5

estions Answers The current exchange rate is *85.30S, the price of a Big Mac hamburger in the United States is $3.53, and the price of a Big Mac hamburger in Japarn is 4280. Other things equal, by how much is the Big Mac hamburger in Japan overpriced or underpriced? Input overpriced as a positive number, underpriced as a negative number, if correctly priced, input "O" Phillips NV produces DVD players and exports them to the United States Last year the exchange rate was $1.19/E and Philips charged 120 euro per player in Euroland and $142.8 per DVD player in the United States. 9 2 Currently the spot exchange rate is $1.40. If the degree of pass through is 75%, what is the price that Phillips is chargng per DVD player in USD? (Hint one easy way to do is to first find the price for 100% pass through) You are planning a 30-day vacation on Pulau Penang, Malaysia, 1 year from now. The present charge for a luxury suite plus meals in Malaysian ringgit (RM) is RM1,082/day. The Malaysian ringgit presently trades at RM6.82/S. The hotel informs her that any increase in its room charges will 1O 3 be limited to any increase in the Malaysian cost of living. Malaysian infiation is expected to be 2.75% annum, while U.S. inflation is expected to be 1.25 %. How many dollars do you expect to need one year hence to pay for her 30-day vacation? Use this info to answer next two questions. During the fixed exchange rate regime, Pandora currency (E) was fixed at 15.70S. On January 1, 2016 Pandora moved to floating exchange rate regime. On January 1, 2017 it was trading at 34.1. During that one year period Pandora's inflation rateN/A was 11% on an annualized basis. Annualized inflation rate in the United States during that same period was 2.5%. 4-5 What should have been the exchange rate (per $) in January 2017 if PPP 4 held? By what percentage was the Pandora peso undervalued/overvalued on an 13 5 annualized basis? Use the quotes from Table 1 attached to answer the next four questions. Heidi Hi Jensen, a foreign exchanige trader at J.P. Morgan Chase, can invest $100,000, or the foreign currency equivalent of the bank's short term funds, in a covered interest arbitrage with Denmark. Note that you are investing for 3 months 14 6-9 NIA po How much of a covered interest arbitrage (CIA) profit can she make if she 5arts out by borrowing in S? How much of a covered interest arbitrage (CIA) profit can she make if she starts out by borrowing $100,000 equivalent in kr? How much of an uncovered interest arbitrage (UIA) profit can she make if Questions 123 Ans