QUESTION 1

Sri Lankan Rupee is currently trading at .16 Thai Baht.1 Somali Shilling is currently trading at .056 Baht. If triangular arbitrage holds, the current value of the Rupee in terms of the Shilling is ____?(Round to the nearest 2 decimal points)

QUESTION 2

Bangladeshi Takais currently trading at 8.5 Chilean Pesos.1Botswanan Pula is currently trading at 7.5 Taka.If triangular arbitrage holds, the value of the Pula in terms of the Peso is ____?(Round to the nearest 2 decimal points)

QUESTION 3

You can purchase a share of stock in Thailand for 600 Thai Baht. The stock typically pays a 40 Baht per share dividend and you expect it will trade in 1 years' time at 620 Baht.

Assume the current spot rate for 1 Canadian dollar is 25 Baht and the Canadian dollar is expected to fall to 20 Baht in a year's time.

The expectednetreturn on Thai stock (assuming it is soldex-dividend) expressed in terms of Canadian dollars is ____%?(Round to the nearest 2 decimal points; e.g., 6.894921 is 6.89)

QUESTION 4

You can purchase a share of stock in Peru for 50 Peruvian Sol. The stock typically pays a 5 Sol per share dividend and you expect it will trade in 1 years' time at 60 Sol.

Assume the current spot rate for 1 US dollar is 4 Sol and the dollar is expected to rise to 5 Sol in a years' time.

The expectednetreturn on Peruvian stock (assuming it is soldex-dividend) expressed in terms of US dollars is ____%?(Round to the nearest 2 decimal points; e.g., 6.894921 is 6.89)

QUESTION 5

You can purchase a 5000 New Zealand dollar pure discount bill that matures in 1 year for 4500 New Zealand dollars.The New Zealand dollar is currently trading at .50 British Pound Sterling and is expected to depreciate to .48 Pounds a year's time.

The expectnetreturn on this discount bill expressed in British Pound Sterling is ___%?(Round to the nearest 2 decimal points; e.g., 6.894921 is 6.89).

QUESTION 6

You can purchase a 100,000 South African Rand pure discount bill that matures in 1 year for 90,000 Rand.The Rand is currently trading at .12 Euro and is expected to appreciate to .15 Euro in a year's time.

The expectnetreturn on this discount bill expressed in Euros is ___%.(Round to the nearest 2 decimal points; e.g., 6.894921 is 6.89)

QUESTION 7

A $1000US Bill with a $10 coupon is trading for $985, and 12,000 Euro Bill with a 200 Euro coupon is trading at 12,100 Euro.Both mature in 1 year.

If uncovered interest parity holds, the market believes the US dollar will depreciate against the Euro by approximately _____ % in a years' time.(Round to the nearest 2 decimal points)

QUESTION 8

A $2000 bill with a $25 coupon in the US is currently selling at $1800, and a 4000 Swedish Krona bill with a 200 Krona coupon is trading for 3500 Krona. Both mature in 1 year. The Krona is currently trading at US $.15. If uncovered interest parity holds, the market believes the Krona will trade at ____ US dollars in 1 years' time.(Round to the nearest 2 decimal points)