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Chrome File Edit View History Bookmarks People Tab Window Help C G 8 100% 47 Fri 11:47 AM QE .. . My Academics | CalCentra X & Topic: Econ 136: Problem X Problem-Set-1-Fall-2020.| x Cross Rates - Bloomberg x Get Registered | Students X New Tab X + - -> C D @ File | /Users/jungtaekchoi/Downloads/Problem-Set-1-Fall-2020.pdf Q Apps M Gmail YouTube Maps Translate & Assignment 7 - M... FELLEZS Silenced... P CS 61A (137 unrea... Problem-Set-1-Fall-2020.pdf 1/2 USD EUR JPY GBP CHF CAD AUD HKD USD 1.1838 0.0094 1.3279 1.0947 0.7656 A 0.1290 EUR 0.8447 0.0080 1.1217 0.9247 0.6467 0.6151 Y 106.2400 125.7669 141.0761 116.2999 81.3352 77.3640 13.7073 GBP 0.7531 0.8915 0.0071 0.8244 0.5765 0.5484 0.0972 CHF 0.9135 1.0814 0.0086 1.2130 0.6994 0.6652 0.1179 CAD 1.3062 1.5463 0.0123 1.7345 1.4299 0.9512 0.1685 AUD 1.3732 1.6257 0.0129 1.8235 1.5033 1.0513 0.1772 HKD 7.7506 B 0.0730 10.2920 8.4845 5.9337 5.6440 (a) What does the number 0.7656 in the first row indicate? (b) Identify the currencies indicated by the three-letter currency codes in the table above. (c) Calculate the missing entries A, B, and C. Hint: Use other currency rates to calculate entry B or C. 2. On 09/04/20 the one-year interest rates in Turkey and Poland were 12.705%/year and -0.035%/ year, respectively, and one Polish zloty (PLN) costs 1.98 Turkish lira (TRY) Source: Investing.com) (a) If covered-interest parity holds, what is the price of one PLN in TRY one year forward? (b) How could an investor make an arbitrage profit from a bank that quoted a 10.5%/ year one-year interest rate in Turkey given your answer to part 2(a)? Cal- culate the profit per unit of currency borrowed. 3. On 09/04/20 the one-year interest rates in Bulgaria and Switzerland were -0.296 + %/ year and -0.660 %/year respectively (Source: Investing.com). On that day was the forward price of a Bulgarian lev (BGN) in Swiss francs (CHF) higher than, lower than, or the same as the spot price if covered interest parity holds? Yes, those are negative nominal rates. Problem-Set-1-....pdf Scan Sep 10, 2....pdf Show All X SEP 11