If the six-month forward rate F_6(yen/pound) = 225, the annual inflation rate in England is 3%. and S(pound/yen) = 0.005, what is the expected annual in nation rate in Japan? As of April 30, 2013, the exchange rate between the Turkish Lira (YTL) and U.S. dollar is YTL1.80/$. The consensus forecast for the U.S. and Turkish inflation rates for the next 1-year period is 1% and 9%, respectively. What is the expected rate of change in the exchange rate and how would you forecast the exchange rate to be at around April 30, 2014? Use the approximation (shortcut) formula Use the exact formula If the 9-month CD rate is 4% (annual) in Germany and if the expected annual inflation is 6%, what is the real annual interest rate? If the International Fisher Effect holds, and if the following information is given, what should be S(RUB/THB)? The expected inflation in Thailand is 5% The expected inflation in Russia is 12% F(THB/RUB) is 1.10 THB is Thai Baht and RUB is Russian Ruble Yesterday, you entered into a futures contract to buy yen25 million at $0.011/yen. Your initial performance bond is $100,000 and your maintenance level is $40,000. At what settle price will you get a demand for additional funds to be posted? Three days ago, you entered into a futures contract to sell euro125,000 at $1.40 per euro. Over the past three days the contract has settled at $1.32, $1.28. and $1.26. You start with $3,000. How much have you made or lost in $ every day (day 1, 2, 3)? What is your balance at the end of each day? What is your total profit or loss in $ for the 3-day period? If you start with $3,000 and if your maintenance margin is $1,000, would you receive a margin call during this period? Let's assume that, at the end of the third day, you withdraw $15,000. Let's also assume that, the next day (at the end of the fourth day), the exchange rate is $1.30/euro. Will you receive a margin call? If you close your account after that, what will be your total profit/loss