We obtain the following information from S&P Capital IQ Pro.

a. Identify the base currency and the quote currency in this exchange rate. (2 marks)

b. Where should you be for this rate to be a direct quote? (2 marks)

c. Identify the big figure in the quote highlighted in the chart. (1 mark)

d. Suppose you believe market FX rates incorporate all available and relevant information, what is your predicted FX for 10/09/2021? Identify the approach you used for this prediction. (2 marks)

e. Suppose you offer currency trading advice. Based on the history of exchange rates provided, should you issue buy or sell advice? Support your reasoning with calculation. Which specific forecasting rule/approach did you use? (5 marks)

f. Calculate the percentage change in the spot rate between 10/04/2021 and 10/08/2021. The base currency has a correlation of 0.39 with the AUD. Based on this information only, would you expect the AUD to appreciate or depreciate against the price currency over the same period, or you need further information to make a good estimate? Explain. (3 marks)

7/8/2021 - 10/8/2021 37.000000 8/16/2021 CHF/THB: 36.620954 36.500000 V Exchange Rate 36.000000 35.500000 35.000000 7/8/2021 7/22/2021 8/5/2021 8/12/2021 8/19/2021 9/2/2021 9/9/2021 9/16/2021 9/30/2021 7/15/2021 7/29/2021 8/26/2021 9/23/2021 10/7/2021 DATE THB 10/08/2021 36.49969 10/07/2021 36.42816 10/06/2021 36.43371 10/05/2021 36.50629 10/04/2021 36.48809 10/01/2021 36.16507 7/8/2021 - 10/8/2021 37.000000 8/16/2021 CHF/THB: 36.620954 36.500000 V Exchange Rate 36.000000 35.500000 35.000000 7/8/2021 7/22/2021 8/5/2021 8/12/2021 8/19/2021 9/2/2021 9/9/2021 9/16/2021 9/30/2021 7/15/2021 7/29/2021 8/26/2021 9/23/2021 10/7/2021 DATE THB 10/08/2021 36.49969 10/07/2021 36.42816 10/06/2021 36.43371 10/05/2021 36.50629 10/04/2021 36.48809 10/01/2021 36.16507