Problem 4 Intro You observe the following exchange rates in the newspaper: Country/currency In US$ Per US$ China yuan 0.19 5.26 Europe euro ()
Problem 4 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 Problem 5 Intro The exchange rate between the euro and the US dollar is 1=$1.14 and the exchange rate between the British pound and the US dollar is 0.62=$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? 2+ decimals Submit Part 2 Attempt 1/10 for 10 pts. If the cross rate is actually 0.777 per in the markets, what is your riskless rate of return for each dollar used? 3+ decimals Submit Problem 6 Intro You observe the following exchange rates (per USD): Country/currency Spot rate 30 days 90 days 180 days China yuan Europe euro Japan Yen UK pound Part 1 4.545 4.636 4.682 4.773 0.781 0.766 0.75 0.727 130 128.7 126.1 120.9 0.637 0.643 0.656 0.675 Attempt 1/10 for 10 pts. How many dollars do you need to buy a Lexus that costs 5,000,000 yen if you want to lock in a rate for the car's delivery in 3 months? 0+ decimals Submit Part 2 Attempt 1/10 for 10 pts. You've saved $800 for a trip to Italy. How many euros will you get if you lock in a rate corresponding to the start of your trip in one month? 0+ decimals Submit
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