please help me in this assignment

1. Oriol Dez Miguel S.R.L., a manufacturer of heavy duty machine tools near Barcelona, ships an order to a buyer in Jordan. The purchase price is 425,000. Jordan imposes a 13% import duty on all products purchased from the European Union. The Jordanian importer then re-exports the product to a Saudi Arabian importer, but only after imposing their own resale fee of 28%. Given the following spot exchange rates on April 11, 2010, what is the total cost to the Saudi Arabian importer in Saudi Arabian riyal, and what is the U.S. dollar equivalent of that price
3. Assume the United States has the following import/export volumes, prices of imports and exports and exchange rate between the U.S. dollar per a foreign currency ($/fc).

The U.S. undertakes a major "devaluation" of the dollar, say 18% on average, against all major trading partners' currencies. What is the pre-devaluation and post-devaluation trade balance?

1. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders if he can make an intermarket arbitrage profit using Libyan dinars and Saudi riyals.He has $1,000,000 to work with, so he gathers the following quotes:

Citibank quote: US$/dinar ($/LYD) 1.9324

National Bank of Kuwait quote: riyal per dinar (SAR/LYD) 1.9405

Barclay quote: US$/riyal ($/SAR) 0.2667

1. Andreas Broszio just started as an analyst for Credit Suisse in Zurich, Switzerland.He receives the following quotes for Swiss francs against the dollar for spot, one-month forward, 3-months forward, and 6-months forward.

1. Calculate outright quotes for bid and ask rates, and the spread between bid and ask rates.
2. Compute premium/discount on the Swiss franc for each maturity using the average spot and the average forward rate.
3. What do you notice about the spread as quotes evolve from spot toward six months?

5. You are given the following information:

Quantity of imports 200

Foreign currency price of imports 20

Exchange rate 1.50

Calculate the foreign currency and domestic currency values of imports. What will happen if the exchange rate falls to 1.20, assuming that the value of the elasticity of demand for imports is -0.5? What if the elasticity is -2.5?

8. The spot exchange rate between the Australian dollar and the Swiss franc (CHF/AUD) is 0.8500-0.8580. A speculator believes that the Swiss franc will appreciate, and so buys CHF1,000,000. Two days later, the exchange rate turns out to be 0.8200-0.8280. Ignoring the interest rate factor, answer the following questions:

(a) What will the speculator do?

(b) How much profit will the speculator make?

(c) Assuming that the speculator could buy and sell at the mid-rates, calculate the profit/loss in this case. Comment on your results.

Economics and Finance Assignment 2 FIN633 Multinational Finance and Investment Please submit hand-written assignment (in hard form) not later than Thursday November 2, 2017 1. Oriol Dez Miguel S.R.L., a manufacturer of heavy duty machine tools near Barcelona, ships an order to a buyer in Jordan. The purchase price is 425,000. Jordan imposes a 13% import duty on all products purchased from the European Union. The Jordanian importer then re-exports the product to a Saudi Arabian importer, but only after imposing their own resale fee of 28%. Given the following spot exchange rates on April 11, 2010, what is the total cost to the Saudi Arabian importer in Saudi Arabian riyal, and what is the U.S. dollar equivalent of that price Currency crossrate Jordanian dinar (JD) per euro () Jordanian dinar (JD) per U.S. dollar ($) Saudi Arabian riyal (SRI) per U.S. dollar ($) 2. Spot rate JD 0.96/ JD 0.711/$ SRI 3.751/$ Assume the United States has the following import/export volumes, prices of imports and exports and exchange rate between the U.S. dollar per a foreign currency ($/fc). Initial spot exchange rate, $/fc Price of exports, dollars ($) Price of imports, foreign currency (fc) Quantity of exports, units Quantity of imports, units Percentage devaluation of the dollar Price elasticity of demand, imports 2.00 20.00 12.00 100 120 18% -0.900 The U.S. undertakes a major "devaluation" of the dollar, say 18% on average, against all major trading partners' currencies. What is the pre-devaluation and post-devaluation trade balance? 3. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders if he can make an intermarket arbitrage profit using Libyan dinars and Saudi riyals. He has $1,000,000 to work with, so he gathers the following quotes: Citibank quote: US$/dinar ($/LYD) National Bank of Kuwait quote: riyal per dinar (SAR/LYD) Barclay quote: US$/riyal ($/SAR) 4. 1.9324 1.9405 0.2667 Andreas Broszio just started as an analyst for Credit Suisse in Zurich, Switzerland. He receives the following quotes for Swiss francs against the dollar for spot, one-month forward, 3-months forward, and 6months forward. Spot exchange rate: Bid rate Ask rate One-month forward 3-months forward 6-months forward a. b. c. SF 1.2575/$ SF 1.2585/S 10 to 15 14 to 22 30 to 20 Calculate outright quotes for bid and ask rates, and the spread between bid and ask rates. Compute premium/discount on the Swiss franc for each maturity using the average spot and the average forward rate. What do you notice about the spread as quotes evolve from spot toward six months? 5. You are given the following information: Quantity of imports 200 Foreign currency price of imports 20 Exchange rate 1.50 Calculate the foreign currency and domestic currency values of imports. What will happen if the exchange rate falls to 1.20, assuming that the value of the elasticity of demand for imports is -0.5? What if the elasticity is -2.5? 8. The spot exchange rate between the Australian dollar and the Swiss franc (CHF/AUD) is 0.8500- 0.8580. A speculator believes that the Swiss franc will appreciate, and so buys CHF1,000,000. Two days later, the exchange rate turns out to be 0.8200-0.8280. Ignoring the interest rate factor, answer the following questions: (a) What will the speculator do? (b) How much profit will the speculator make? (c) Assuming that the speculator could buy and sell at the mid-rates, calculate the profit/loss in this case. Comment on your results