Question
Quantitative Problem 1: Suppose that 1 Swedish krona could be purchased in the foreign exchange market today for $0.17. If the krona appreciated 10% tomorrow
Quantitative Problem 1: Suppose that 1 Swedish krona could be purchased in the foreign exchange market today for $0.17. If the krona appreciated 10% tomorrow against the dollar, how many kronas would a dollar buy tomorrow? Round your answer to 2 decimal places. Do not round intermediate calculations.
kronas
Quantitative Problem 2: Suppose the exchange rate between the U.S. dollar and the South African rand was 9 rand = $1 and the exchange rate between the U.S. dollar and the Israeli shekel was 1 shekel = $0.2. What was the exchange rate between the South African rand and the Israeli shekel? Round your answer to 2 decimal places. Do not round intermediate calculations. rands per shekel
Quantitative Problem: Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.013, while in the 180-day forward market 1 Japanese yen = $0.0137. 180-day risk-free securities yield 1.7% in Japan. What is the yield on 180-day risk-free securities in the United States? Round your answer to 2 decimal places. Do not round intermediate calculations. %
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