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Foreign exchange and commodity prices. While traveling in the following countries, you see twenty-ounce plastic bottles of Coca-Cola. You know the price in the United States for a Coke is $1.09, but the countries have the following prices: Canada: C$1.42 Japan: ¥159 England: £0.56 European Union: €0.77 What is the implied exchange rate for U.S. dollars and these four currencies?

Foreign exchange and commodity prices. While traveling in the following countries, you see twenty-ounce plastic bottles of Coca-Cola. You know the price in the United States for a Coke is $1.09, but the countries have the following prices: Canada: C$1.42 Japan: ¥159 England: £0.56 European Union: €0.77 What is the implied exchange rate for U.S. dollars and these four currencies?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Chapter 18, Question 1. Attached is a similar question with answers. Please answer in similar format

Foreign exchange and commodity prices. While traveling in the following countries, you see twenty-ounce plastic bottles of Coca-Cola. You know the price in the United States for a Coke is $0.96, but the countries have the following prices: Canada: C$1.56 Japan: ¥155 England: £0.47 European Union: €0.88 What is the implied exchange rate for U.S. dollars and these four currencies? What is the implied direct, or American, exchange rate between the U.S. dollar (S) and Canadian dollar (C$)? $0.6154 per C$ (Round to four decimal places.) What is the implied indirect, or European, exchange rate between the Canadian dollar (CS) and U.S. dollar ($)? C$ 1.6250 per $ (Round to four decimal places.) What is the implied direct, or American, exchange rate between the U.S. dollar (S) and Japanese yen (¥)? $0.0062 per Y (Round to four decimal places.) What is the implied indirect, or European, exchange rate between the Japanese yen (Y) and U.S. dollar ($)? ¥ 161.4583 per $ (Round to four decimal places.) What is the implied direct, or American, exchange rate between the U.S. dollar (S) and British pound sterling (£)? $ 2.0426 per £ (Round to four decimal places.)
Transcribed Image Text:Foreign exchange and commodity prices. While traveling in the following countries, you see twenty-ounce plastic bottles of Coca-Cola. You know the price in the United States for a Coke is $0.96, but the countries have the following prices: Canada: C$1.56 Japan: ¥155 England: £0.47 European Union: €0.88 What is the implied exchange rate for U.S. dollars and these four currencies? What is the implied direct, or American, exchange rate between the U.S. dollar (S) and Canadian dollar (C$)? $0.6154 per C$ (Round to four decimal places.) What is the implied indirect, or European, exchange rate between the Canadian dollar (CS) and U.S. dollar ($)? C$ 1.6250 per $ (Round to four decimal places.) What is the implied direct, or American, exchange rate between the U.S. dollar (S) and Japanese yen (¥)? $0.0062 per Y (Round to four decimal places.) What is the implied indirect, or European, exchange rate between the Japanese yen (Y) and U.S. dollar ($)? ¥ 161.4583 per $ (Round to four decimal places.) What is the implied direct, or American, exchange rate between the U.S. dollar (S) and British pound sterling (£)? $ 2.0426 per £ (Round to four decimal places.)
Foreign exchange and commodity prices. While traveling in the following countries, you see twenty-ounce plastic bottles of Coca-Cola. You know the price in the United States for a Coke is $1.09, but the countries have the following prices: Canada: C$1.42 Japan: ¥159 England: £0.56 European Union: €0.77 What is the implied exchange rate for U.S. dollars and these four currencies?
Transcribed Image Text:Foreign exchange and commodity prices. While traveling in the following countries, you see twenty-ounce plastic bottles of Coca-Cola. You know the price in the United States for a Coke is $1.09, but the countries have the following prices: Canada: C$1.42 Japan: ¥159 England: £0.56 European Union: €0.77 What is the implied exchange rate for U.S. dollars and these four currencies?
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