Mr. Sami contacted his FOREX trader and was informed with the following: the spot rate is USD 0.6545/EUR. It is expected that USD may depreciate by 5% after two months. What will be new exchange rate after depreciation? O a. EUR/USD= 0.7872 O b.1 EUR= 0.6872 USD. O C USD/EUR= 0.7582 O d. EUR 0.6872/USD
Mr. Sami contacted his FOREX trader and was informed with the following: the spot rate is USD 0.6545/EUR. It is expected that USD may depreciate by 5% after two months. What will be new exchange rate after depreciation? O a. EUR/USD= 0.7872 O b.1 EUR= 0.6872 USD. O C USD/EUR= 0.7582 O d. EUR 0.6872/USD
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
Problem 1PS
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![Mr. Sami contacted his FOREX trader and was informed with the following: the spot rate is USD 0.6545/EUR. It is expected that USD may depreciate
by 5% after two months. What will be new exchange rate after depreciation?
O a. EUR/USD= 0.7872
O b. 1 EUR= 0.6872 USD
OC USD/EUR= 0.7582
O d. EUR O.6872/USD](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09fd9442-b654-465f-80fd-fd60173ba4b5%2F59ca79b5-7f0f-44a5-9f38-d5c9b027c562%2Fgymfgoh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mr. Sami contacted his FOREX trader and was informed with the following: the spot rate is USD 0.6545/EUR. It is expected that USD may depreciate
by 5% after two months. What will be new exchange rate after depreciation?
O a. EUR/USD= 0.7872
O b. 1 EUR= 0.6872 USD
OC USD/EUR= 0.7582
O d. EUR O.6872/USD
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