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-Test 22.3 Table 22-1 shows the exchange rate for the Swiss franc on December 31, 2007. The previous day, the spot rate of exchange for

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-Test 22.3 Table 22-1 shows the exchange rate for the Swiss franc on December 31, 2007. The previous day, the spot rate of exchange for the Swiss franc was SFr1.1291/$. Thus on December 31, you could buy more Swiss francs for your dollar than 1 day earlier. Did the Swiss franc appreciate or depreciate? Spot and Forward Rate hange rates for Quotation Spot Rate 1 Month 2007 3 Months 1 Year Europe EMU (euro) Direct 1.4621 1.4629 1.4631 1.4576 Sweden (krona) Indirect 6.4632 6.4612 6.4600 6.4842 Switzerland (Franc) Indirect 1.1322 1.1299 1.1264 1.1179 United Kingdom (pound) Direct 1.9906 1.9888 1.9857 1.9652 Americas Canada (dollar) Indirect 9870 9866 .9863 9884 Mexico (peso) Indirect 10.9143 10.9376 10.9656 11.3118 Pacific/Africa Hong Kong (dollar) Indirect 7.7974 7.7878 7 .7716 7.7309 Japan (yen) Indirect 111.715 111.332 110.626 108.173 South Africa (rand) Indirect 6.8344 6.8729 6.9514 South Korea (won) 7.3535 Indirect 936.050933.750 931.150 927.850 Direct Gutafon number of dollars per unit of foreign currency, Indirect quotation: units of foreign currency per dolar Source Financial Times, January 2, 2008, avalable at www.il.com

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