Under the classic Gold Standard, U.S. dollar is pegged to gold at $20.67 = 1ounce of gold, and Japanese yen is pegged to gold at 41.47 = 1 ounce of gold. (a) What is theimplied exchange rate between U.S. dollar and Japanese yen under the Gold Standard? (b) Ifmarket rate is $1= 2.2, is there an arbitrage opportunity? How much profit can you make? Willthe market stay at this rate? Why? c) If market rate is $1= 1.8, is there an arbitrage opportunity?How much profit can you make? Will the market stay at this rate? Why? Assume you have $100or Japanese yen of equivalent value.

USF TuitionUniversity of San Francisco attracts students from all across the world. 17% of thestudents come from foreign countries. The tuition to attend USF as a full time undergraduatestudent is $44,000 a year. The recent currency fluctuations have affected the tuition cost of manyinternational students in terms of their home currencies. Please use the Pacific Exchange Ratedatabase (fx.sauder.ubc.ca)s Database Retrieval to find the exchange rates of Chinese yuan(renminbi), Danish kroner, Japanese yen, Indonesian rupiah, Sau Arabia riyal, Taiwanese dollar,and Vietnamese dong on Aug 15, 2013 and Aug 15, 2016 (use USD as the base currency).Calculate the percentage change of each currency and discuss whether it has depreciated orappreciated. Calculate what the tuition costs are at the old and new exchange rates for eachcurrency and how much the tuition cost in that currency has increased or decreased. Studentsfrom which country have been affected the most? Students from which country have beenaffected the least?

Forward Premium on sterlingSince the UK voted to leave the EU on June 23, 2016, the poundsterling has fallen by 11% against the dollar from its pre-referendum value. Please usehttp://www.hsbcnet.com/gbm/fwcalc-dispto find the forward rate quote for 1-month, 3-month, 6-moht, 9-motnh, and 1-year forward rates and calculate the forward premium (discount) perannum for all maturities. Which maturity has the smallest and largest premium or discount?Please provide the date and time you get the data.

Triangular arbitrage using the Japanese yen:The following exchange rates are available toyou. (You can buy or sell at the stated rates.Assume you have an initial JPY10,000,000. Can youmake a profit via triangular arbitrage? If so, show the steps and calculate the amount of profit inJapanese yen.

Mt. Fuji Bank

100.00/$

Mt. Rushmore Bank

CHF0.97/$

Mt Blanc Bank

95.00/CHF

Please note:1.You should do all problems individually first and keep a copy of the individual work

2.The assignment should show both the steps and answer.3.Please type your assignment. Not typing the assignment will result in a 5-point deduction.4.Please include a cover page for your assignment using the template under the moduleAssignment 1 on Canvas. Not including the cover page will result in a 5-point deduction.