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Intro Market observes the exchange rates as of today: $1 $0 = 0.95, $2 $0 = 0.88 Part 1 | Attempt 1/3 for 10 pts.
Intro Market observes the "exchange rates" as of today: $1 $0 = 0.95, $2 $0 = 0.88 Part 1 | Attempt 1/3 for 10 pts. What is the implied interest rate between time t = 0 and t = 2? 4+ decimals Submit | Attempt 1/3 for 10 pts. Part 2 Now there is a project with three certain cashflows: CF = - $10MM, CF = $5MM CF, = $7MM. What is NPV? 3+ decimals Submit Part 3 - Attempt 1/3 for 10 pts. - Attempt 1/3 for 10 pts. Part 3 How much is CF worth at t = 2? 2+ decimals Submit
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