Exhibit 5.7 Exchange Rates Currencies January 31, 2023 U.S.-dollar foreign-exchange rates in late New York trading Country/Currency Americas Argentina peso Brazil real Canada dollar Monday In US$ Per US$ 0.0095 105.02 0.1883 5.3102 0.7869 1.2708 Chile peso Colombia peso 0.001249 800.60 0.000254 3942.5 Costa Rica colon 0.001556 642.73 Ecuador US dollar 1 1 Mexico peso 0.0485 20.635 Peru new sol 0.2601 3.845 Asia-Pacific Australian dollar 0.7067 1.4150 1-mos forward 0.7068 1.4149 3-mos forward 0.7071 1.4143 6-mos forward 0.7077 1.4131 China yuan 0.1572 6.3612 Hong Kong dollar 0.1283 7.7974 India rupee 0.01340 74.622 Indonesia rupiah 0.0000696 14368 Japan yen 0.00869 115.11 1-mos forward 0.00869 115.09 3-mos forward 0.00870 114.98 6-mos forward 0.00872 114.70 Find and report the following exchange rate quotes from Exhibit 5.7, Note: Do not round your answers and enter only the numeric portion without the currency symbols. Required: a. American term quote for Chilean peso is Note: Do not round intermediate calculations. Round your answer to 4 decimal places. Chilean peso b. European term quote for Argentinian peso is Note: Do not round intermediate calculations. Round your answer to 3 decimal places. Argentinian peso

Exhibit 5.7 Exchange Rates Currencies January 31, 2023 U.S.-dollar foreign-exchange rates in late New York trading Country/Currency Americas Argentina peso Brazil real Canada dollar Monday In US$ Per US$ 0.0095 105.02 0.1883 5.3102 0.7869 1.2708 Chile peso Colombia peso 0.001249 800.60 0.000254 3942.5 Costa Rica colon 0.001556 642.73 Ecuador US dollar 1 1 Mexico peso 0.0485 20.635 Peru new sol 0.2601 3.845 Asia-Pacific Australian dollar 0.7067 1.4150 1-mos forward 0.7068 1.4149 3-mos forward 0.7071 1.4143 6-mos forward 0.7077 1.4131 China yuan 0.1572 6.3612 Hong Kong dollar 0.1283 7.7974 India rupee 0.01340 74.622 Indonesia rupiah 0.0000696 14368 Japan yen 0.00869 115.11 1-mos forward 0.00869 115.09 3-mos forward 0.00870 114.98 6-mos forward 0.00872 114.70 Find and report the following exchange rate quotes from Exhibit 5.7, Note: Do not round your answers and enter only the numeric portion without the currency symbols. Required: a. American term quote for Chilean peso is Note: Do not round intermediate calculations. Round your answer to 4 decimal places. Chilean peso b. European term quote for Argentinian peso is Note: Do not round intermediate calculations. Round your answer to 3 decimal places. Argentinian peso

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter17: Multinational Financial Management

Section: Chapter Questions

Problem 6P

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EXCHANGE RATES Table 17.1 lists foreign exchange rates for August 30, 2018. On that day, how many dollars would be required to purchase 1,000 units of each of the following: British pounds, Canadian dollars, EMU euros, Japanese yen, Mexican pesos, and Swedish kronas?
DISCUSSION QUESTIONS Recreate Table 17.1 for the following currencies: Australian dollar, British pound, Canadian dollar, Chinese yuan, Euro, Japanese yen, and Swiss franc. Be sure to show both the direct quotations and indirect quotations. TABLE 17.1 Sample Exchange Rates: Friday, May 29, 2015 Direct Quotation: U.S. Dollars Required to Buy One Unit of Foreign Currency (1) Indirect Quotation: Number of Units of Foreign Currency per U.S. Dollar (2) Australian dollar 0.7644 1.3082 Brazilian real 0.3145 3.1793 British pound 1.5290 0.6540 Canadian dollar 0.8030 1.2454 Chinese yuan 0.1613 6.2004 Danish krone 0.1473 6.788 EMU euro 1.0993 0.9097 Hungarian forint 0.00355404 281.37 Israeli shekel 0.2586 3.8673 Japanese yen 0.00806 124.14 Mexican peso 0.0650 15.3776 South African rand 0.0823 12.1557 Swedish krona 0.1174 8.5195 Swiss franc 1.0636 0.9402 Venezuelan bolivar fuerte 0.1587289 6.3001 Nate: Column 2 equals 1.0 divided by column 1. However, rounding differences do occur. Source: Adapted from The Wall Street Journal (online.wsj.com). June 1, 2015.
Problem 1. A currency trader has compiled the following currency quotes: USD/EUR ($/Euro USD/GBP ($/Â£) JPY/USD (Â¥) Spot rate $1.2139 $1.7730 115.674 6-month forward rate $1.2067 $1.7894 114.867 Which of the following statements regarding currencies is CORRECT? A) The pound is strong relative to the dollar and the dollar is strong relative to the yen. B) The euro is strong relative to the dollar and the yen is weak relative to the dollar. C) The euro is weak relative to the dollar and the yen is strong relative to the dollar. D) The dollar is strong relative to the pound and the dollar is weak relative to the euro. Problem 2. Mary Beth Morgan and Shaban Shoshi are currency traders for Mercury Forex Inc. They have compiled the following information concerning currencies in Sweden (SEK), New Zealand (NZD), and United States (USD). SEK/USD USD/NZD Spot bid rate 7.8927 $0.6994 Spot ask rate 7.9021 $0.7000 3-month forward bid rate 7.8780 $0.7010 3-month forward ask rate…
Table 4.2 Currency Cross Rates (2:00 p.m. ET, Per CS Canadian dollar (C$) U.S. dollar (US$) Euro (€) Japanese yen (x) British pound (£) Swiss franc (Sufr) Australian dollar (AS) January 11, 2019) Per US$ Per C 1.52586 1.32329 New exchange rate New exchange rate 0.75569 0.65537 0.86725 81.71270 108.11980 124.67273 0.59198 0.73894 1.05216 Per Y 0.012238 1.15307 0.009249 0.008021 per cs Per Sw fr 1.35328 1.02267 0.71823 0.88697 0.62292 138.12155 110.61947 77.63975 0.801221 0.56273 0.70245 0.78337 0.90318 0.00724 0.97783 1.12744 0.00904 1.24809 1.39232 1.60535 0.01288 1.77704 1.42359 Jper c Per £ 1.68925 1.27654 1.10720 If the CS weakens by 1.6% relative to the € in Table 4.2, what will be the new values for € per C$100 and C$ per €1.00? (Do not round your intermediate calculations. Round your answers to 5 decimal places.) Per AS 0.95043
Pound Ca Megs MlensP Seved Use the information below to answer the following questions. U.S. $ EQUIVALENT CURRENCY PER U.S. %24 3.3466 .8088 13.2992 .9720 482.80 Polish Zloty 2988 1.2364 .0752 Euro Mexican Peso Swiss Franc Chilean Peso New Zealand Dollar Singapore Dollar 1.0288 .002071 8084 1.2370 .8008 1.2488 a. If you have $260, how many Polish zloty can you get? (Do not include the Polish zloty sign (Z). Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much is one euro worth in U.S. dollars? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) c. If you have 4.70 million euros, how many dollars do you have? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 1,234,567.) d. Which is worth more, a New Zealand dollar or a Singapore dollar? e. Which is worth more, a Mexican peso or a Chilean peso? f-1. How many Swiss francs can you get for a…
Question 12 Given the following cross currency rates, identify an arbitrage trade and show the profit if you start with $1,000. (USD = U.S. dollar, SGD = Singapore dollar, CHF = Swiss franc) SGD:USD CHF:USD SGD:CHF 1,045.46 3.00 1.50 2.20
Table 4.2 Currency Cross Rates (2:00 p.m. ET, Per CS Canadian dollar (C$). U.S. dollar (US$) Euro (€) Japanese yen (x) British pound (£) Swiss franc (Swfr) Australian dollar (A$) 0.75569 0.65537 January Per US$ 1.32329 11, 2019) Per Y Per C 0.012238 1.52586 1.15307 0.009249 0.008021 0.86725 . 81.71270 108.11980 124,67273) 0.59198 0.73894 1.05216 0.78337 0.97783 1.39232 Per E 1.68925 1.27654 1.10720- 138.12155 0.90318 0.00724 0.00904 1.12744 0.01288 1.60535 Per Sw fr Per AS 1,35328 0.95043 1.02267 0.71823 0.88697 0.62292 110.61947 77.63975 0.80122 0.56273 0.70245 1.24809 1.77704 1.42359 If the C$ strengthens by £0.0021 from the value in Table 4.2, what will be the new value of C$ per £1.00? (Do not round your intermediate calculations. Round your answer to 4 decimal places.) New value C$ per £1.00
QUESTION 24 Assume that the yen/dollar exchange rate quoted in Tokyo at 5 p.m. is ¥120 = $1, and the New York yen/dollar exchange rate at the same time (noon New York time) is ¥123 = $1. What action should a broker take to yield immediate profit? forward exchange currency speculation currency swap arbitrage
Question 3: Foreign Exchange Market Suppose on 1 January 2022 interest rate in US (home country) was 0.25% and in Japan was -0.1%, whereas the spot exchange rate was 115 ¥/$. On 15 June 2022, US increased interest rate to 1.75% while Japan interest rate remained the same, the Japanese exchange rate depreciated from 115 \/S to 137 \/$. (*Using proper diagram(s) and interest rate parity condition) A) Explain why exchange rate changed from 115¥ per dollar to 137* per dollar. B) With US inflation reached new 40-year high in June 2022 of 9.1%, it is expected that US will keep increasing her interest rate toward the end of this year. a) How the expectation will affect the current spot exchange rate? b) If you have $1000 for investment in USD or Japanese Yen deposit till the end of this year, how would you invest your $1000 now?
QUESTION 9 The current spot rate of the US $ against the UK £ is $1.310 to £1. Inflation rates for the next year are expected to be 2% in the US and 3% in the UK. Using the purchasing power parity theory calculate the dollar exchange rate in one years' time. O A. 1.297 ОВ. 1.310 OC. 1.322 OD. 1.280 O E. 1.340
21.6 Forward rate: Explain the relationship between each pair of currencies. Spot Rate Forward Rate a. $1.655 £ $1.6001/£ b. ¥104.45 $ ¥102.33/$ c. C$ 1.1121 $ C$ 1.0940/$
ok -nces The following are the foreign currency positions of an H, expressed in the foreign currency: Assets Liabilities FX Bought FX Sold Sf 127,500 Sf 51,000 Sf 10, 200 Sf 15,300 £ 38,168 £ 16,794 £ 11,450 £. 15,267 ¥7,869,885 ¥3, 147,954 ¥1, 259, 181 ¥9, 233,998 Currency Swiss franc (Sf) British pound (£) Japanese yen (V) The exchange rate of dollars for Sf is 1.02, of dollars for British pound is 1.31, and of dollars for yen is 0.00953. The following are the foreign currency positions converted to dollars: Currency Swiss franc (Sf) British pound (£) Japanese yen (¥) Assets $125,000 $ 50,000 $ 75,000 Liabilities EX Bought. $50,000 $22,001 $30,000 $10,000 $15,000 $12,000 FX Sold $15,000 $20,000 $88,000 a. What is the FI's net exposure in Swiss francs stated in Swiss francs (Sf) and in dollars ($)? b. What is the FI's net exposure in British pounds stated in British pounds (£) and in dollars. ($)? c. What is the FI's net exposure in Japanese yen stated in Japanese yen (*) and in…