Problem 14 Intro Consider the following information about the U.S. and Brazil: U.S. Brazil Expected inflation rate 2% 3% Nominal interest rate 3.8% 4.4% Spot rate 1-year forward rate $0.239 per real $0.222 per real Part 1 Attempt 1/10 for 10 pts. What is the expected exchange rate in one year according to purchasing power parity (in dollars per real)? 3+ decima Submit Part 2 - Attempt 1/10 for 10 pts. What is the expected exchange rate in one year according to the international Fisher effect (in dollars per real)? 3+ decima Submit Part 3 Attempt 1/10 for 10 pts. What should be the one-year forward rate according to interest rate parity (in dollars per real)? 3+ decima Submit Problem 10 Intro Assume that the real interest rate is constant everywhere. The annual nominal interest rate is 3.7% in the U.S. and 4.6% in Spain. Part 1 Attempt 1/10 for 10 pts. What is the exact expected percentage change in the exchange rate (measured in U.S. dollars per euro) according to the international Fisher effect? A+ decima Submit Problem 11 Intro Assume that the real interest rate is 2% everywhere. The annual nominal interest rate is 3.6% in the U.S. and 5.2% in Mexico. Part 1 Attempt 1/10 for 10 pts. What is the approximate expected percentage change in the exchange rate (measured in U.S. dollars per Mexican peso) according to the international Fisher effect? 4+ decima Submit Problem 12 Intro Assume that the real interest rate is 2% everywhere. The annual nominal interest rate is 4.5% in the U.S. and 3.2% in Germany. Part 1 Attempt 1/10 for 10 pts. What is the approximate expected percentage change in the exchange rate (measured in U.S. dollars per euro) according to the international Fisher effect? 4+ decima Submit Problem 13 Intro Your company expects to receive 200,000 euros in one year from exporting to France. Consider the following information about the U.S. and Brazil: U.S. France Expected inflation rate 2% 4% Nominal interest rate 3% 4.4% Spot rate $1.07 per euro Part 1 | Attempt 1/10 for 10 pts. How much will your company receive if your company hedges its receivables and interest rate parity holds (in $)? 0+ decima Submit Part 2 "Attempt 1/10 for 10 pts. How much will your company receive if your company does not hedge its receivables and the international Fisher effect holds (in $)? 0+ decima Submit Problem 14 Intro Consider the following information about the U.S. and Brazil: U.S. Brazil Expected inflation rate 2% 3% Nominal interest rate 3.8% 4.4% Spot rate 1-year forward rate $0.239 per real $0.222 per real Part 1 Attempt 1/10 for 10 pts. What is the expected exchange rate in one year according to purchasing power parity (in dollars per real)? 3+ decima Submit Part 2 - Attempt 1/10 for 10 pts. What is the expected exchange rate in one year according to the international Fisher effect (in dollars per real)? 3+ decima Submit Part 3 Attempt 1/10 for 10 pts. What should be the one-year forward rate according to interest rate parity (in dollars per real)? 3+ decima Submit Problem 10 Intro Assume that the real interest rate is constant everywhere. The annual nominal interest rate is 3.7% in the U.S. and 4.6% in Spain. Part 1 Attempt 1/10 for 10 pts. What is the exact expected percentage change in the exchange rate (measured in U.S. dollars per euro) according to the international Fisher effect? A+ decima Submit Problem 11 Intro Assume that the real interest rate is 2% everywhere. The annual nominal interest rate is 3.6% in the U.S. and 5.2% in Mexico. Part 1 Attempt 1/10 for 10 pts. What is the approximate expected percentage change in the exchange rate (measured in U.S. dollars per Mexican peso) according to the international Fisher effect? 4+ decima Submit Problem 12 Intro Assume that the real interest rate is 2% everywhere. The annual nominal interest rate is 4.5% in the U.S. and 3.2% in Germany. Part 1 Attempt 1/10 for 10 pts. What is the approximate expected percentage change in the exchange rate (measured in U.S. dollars per euro) according to the international Fisher effect? 4+ decima Submit Problem 13 Intro Your company expects to receive 200,000 euros in one year from exporting to France. Consider the following information about the U.S. and Brazil: U.S. France Expected inflation rate 2% 4% Nominal interest rate 3% 4.4% Spot rate $1.07 per euro Part 1 | Attempt 1/10 for 10 pts. How much will your company receive if your company hedges its receivables and interest rate parity holds (in $)? 0+ decima Submit Part 2 "Attempt 1/10 for 10 pts. How much will your company receive if your company does not hedge its receivables and the international Fisher effect holds (in $)? 0+ decima Submit