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Suppose the spot and three-month forward rates for the yen are 102.23 and 101.16 respectively. a. Is the yen expected to get stronger or weaker?

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Suppose the spot and three-month forward rates for the yen are 102.23 and 101.16 respectively. a. Is the yen expected to get stronger or weaker? b. What would you estimate is the difference between the inflation rates of the United States and Japan? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16) a. Yen expected to get stronger or weaker b. Difference between the inflation rates -4.12 % Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5120 S$/US$. You have just placed an order for 21,000 motherboards at a cost to you of 231.65 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $163 each. a. Calculate your profit if the exchange rates stay the same over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Calculate your profit if the exchange rate rises by 9 percent over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Calculate your profit if the exchange rate falls by 9 percent over the next 90 days. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. ) d. What is the break-even exchange rate? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) e. What percentage decrease does this represent in terms of the Singapore dollar versus the U.S. dollar? (Enter your answer as a positive value. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Profit a. b. Profit Profit C. d. Break-even exchange rate /S e. Percentage decrease %

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