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Use information from the table below to calculate the 30-day, 60-day and 180-day discount or premium for the Mexican peso. Spot: MXN 1 = $13.3694

  1. Use information from the table below to calculate the 30-day, 60-day and 180-day discount or premium for the Mexican peso.
  2. Spot: MXN 1 = $13.3694
  3. 30-day forward: MXN 1 = $13.3488
  4. 90-day forward : MXN 1 = $13.2219
  5. 180-day forward: MXN 1 = $13.1888
  6. Use information from the table below to calculate the 30-day, 60-day and 180-day discount or premium for the euro.

Spot: Euro 1 = $0.7931

30-day forward : Euro 1 = $0.7942

90-day forward: Euro 1 = $0.7943

180-day forward Euro 1 = $0.7948

3.Assuming there are no transaction costs and supposing that 1 = $1.563740 in New York, $1 = 0.796178 in Paris, and 1 = 0.803199 in London, calculate the arbitrage opportunities that exist based on these rates. (Briefly show or explain how you arrived at your solutions to get partial credit if one or more answers are incorrect.)

4.Suppose Microsoft Corporation (Microsoft) receives quotes of $0.012524(bid) and $0.012526 (ask)for the yen( ) and $0.033540 (bid) and $0.033541 (ask) for the Taiwan dollar (NT$).

  1. How many U.S. dollars will Microsoft receive from the sale of 60 million?
  2. What is the U.S. dollar cost to Microsoft if it buys 1.2 billion?
  3. How many NT$ will Microsoft receive for U.S. $700, 000?
  4. How many yen will Microsoft receive for NT$400 million?
  5. What is the yen cost to Microsoft of buying NT$82 million?

5.In a 2-3 page document, discuss reasons that MNCs list their shares on foreign capital markets.

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