Price of Mercedes Benz as a luxury car made in Germany is €43,500 (Euro) meanwhile price of Mercedes Benz that is produced as American Edition in the US market is $51,000. Spot rate is $1.172/€. If Euro (€) appreciate to be $1.350/€ (
a. How much should the price of Mercedes Benz be in the US after appreciation of Euro?
b. Calculate the degree of exchange-rate pass through if the price of Mercedes Benz in the US is $55,000

2. Singapore firm bought imported turbine from United States. The payment will be made for next three months. The amount of imports was $ 750,000. The chief financial officer of that company bought the call option to protect it import. The exercise or strike price is S$ 1.350/$, the call option premium is S$0.005 /$ and the future spot rate is S$1.415/$ . If the future spot rate is correctly predicted, what should the firm do? And what future spot rate is the firm indifferent between the call option and spot market?

3. Indonesia firm exports its product to South Korea. The payment will be made for next three months. The amount of exports was $ 650,000. MR X as the chief financial officer bought the put option to protect its asset-dominated foreign currency. The exercise or strike price is Rp 13,550/$, the put option premium is Rp 25/$ and the future spot rate is Rp 13. 425/$ . If the future spot rate is correctly predicted, what should the firm do? And what future spot rate is the firm indifferent between the put option and spot market?