QUESTION 56 Suppose that a Big Mac costs $2.5 in the US and 275 yen in Japan today. If the actual exchange rate is yen105/$ in the market. According to the Big Mac prices, the Japanese yen is over/under valued compared to US $ by _%. O undervalued by 3.46% undervalued by 4.76% overvalued by 3.46% O overvalued by 4.76% overvalued by 8.56% QUESTION 57 If the $/ bid and ask prices are $1.75 and $1.77, respectively. What is the corresponding /$ bid prices? 0.5650 0.5667 O 0.5691 0.5714 0.5811 QUESTION 58 If the $/ bid and ask prices are $1.75 and $1.77, respectively. If you want to sell 1,000, how much dollars would you get? O $1,500 $1,700 O $1,720 $1,750 $1,780 QUESTION 59 The SF/$ spot exchange rate is 1.50 and the AUD/$ is 1.3. What is the SF/AUD cross exchange rate? O 0.95 O 1.15 O 1.28 1.50 1.75 QUESTION 60 Assume the following prices. If a customer wants to sell 1,000,000 for, how much will he get? American Terms (S/E) (S/E) European Terms(/$) (/$) Bid Ask British Pound () Euro () 1.4578 1.4633 Bid 0.6834 Ask 0.6860 1.1612 1.1615 0.8610 0.8612 1,134,512 O 1,212,333 1,233,255 1,255,101 QUESTION 61 If the following information holds, the 6-month forward bid price for dollars as denominated in Japanese yen is Spot forward- Pound ($/) bid 1.6523 Yen (W/S) mid 114.25 bid 114.2 ask 114.3 mid 1.6525 ask 1.6527 1m forward- 114.02 -24 -22 1.6500 -26 -24 6m 112.10 -220 -210 1.6368 -160 -154 OV24 O 112/$ 114.22/$ O Y115.12/%