Intro You observe the following exchange rates in the newspaper: Country/currency In US$ Per US$ China yuan 0.19 5.26 Europe euro () 1.33 0.752 Japan yen () 0.00781 128 UK pound () 1.6 0.625 Part 1 Attempt 1/10 for 10 pts. What is the exchange rate between the yen and the pound (in \/)? 0+ decimals Submit Part 2 Attempt 1/10 for 10 pts. What is the exchange rate between the yuan and the euro (in yuan/)? 0+ decimals Submit Part 3 Attempt 1/10 for 10 pts. What is the exchange rate between the yuan and the yen (in yuan/\)? 4+ decimals Submit Intro The exchange rate between the euro and the US dollar is 1=$1.19 and the exchange rate between the British pound and the US dollar is 0.67=$1. Part 1 Attempt 1/10 for 10 pts. What is the cross rate between euros and pound, i.e., how many pounds does one euro buy? .797 Correct 1 * $1.19 per * 0.67 per $ = 0.797 Part 2 Attempt 9/10 for 10 pts. If the cross rate is actually 0.877 per in the markets, what is your riskless rate of return for each dollar used? 3+ decimals Submit Problem 7 Intro The current exchange rate between the dollar and euro is 1.11 dollars per euro. The nominal risk-free rate is 1.2% in the US and 0.8% in Europe. Part 1 Attempt 3/10 for 10 pts. What should be the 1-year forward rate (in dollars per euro) according to covered interest parity? 2+ decimals Submit