**Nigerian Naira Floated**On Friday, June 17, 2016, the Central Bank of Nigeria (CBN) abandoned the Nigerian naira's (NGN) fixed exchange rate and allowed the currency to float. Previously fixed against the U.S. dollar at NGN 198.37 = 1.00 USD, the naira closed at NGN 280.55/USD on Monday, June 20, the first day of trading following the float. The naira quickly floated (sunk) to NGN 325.58/USD by August 18. Similarly, the naira fell from NGN 218.4413 = 1.00 EUR to NGN 317.7786/EUR on June 20, and NGN 349.9772/EUR on August 18.**Questions:**a. What was the percentage change in the value of the Nigerian naira versus the dollar on the first trading day?b. What was the percentage change in the value of the naira versus the dollar by August 18, 2016?c. What was the percentage change in the value of the Nigerian naira versus the euro on the first trading day?d. What was the percentage change in the value of the naira versus the euro by August 18, 2016?**Solutions:**a. What was the percentage change in the value of the Nigerian naira versus the dollar on the first trading day?The percentage change in the value of the Nigerian naira versus the dollar on the first trading day was [ ]%. (Round to two decimal places.)

Answered: Image /qna-images/answer/39bdc4d7-e96e-4af7-a0ce-107ee5abc229.jpgFormula's: Calculations:

Nigerian naira Floated. On Friday June 17, 2016, the Central Bank of Nigeria (CBN) abandoned the Nigerian naira's (NGN) fixed exchange rate and allowed the currency to float. Previously fixed against the U.S. dollar at NGN 198.37 = 1.00 USD, the naira closed at NGN 280.55/USD on Monday June 20, the first day of trading following the float. The naira quickly floated (sunk) to NGN 325.58/USD by August 18. Similarly, the naira fell from NGN 218.4413 = 1.00 EUR to NGN 317.7786/EUR on June 20, and NGN 349.9772/EUR on August 18. a. What was the percentage change in the value of the Nigerian naira versus the dollar the first trading day? b. What was the percentage change in the value of the naira versus the dollar by August 18, 2016? c. What was the percentage change in the value of the Nigerian naira verus the euro the first trading day? d. What was the percentage change in the value of the naira versus the euro by August 18, 2016? a. What was the percentage change in the value of the Nigerian naira versus the dollar the first trading day? The percentage change in the value of the Nigerian naira versus the dollar the first trading day was %. (Round to two decimal places.)

Nigerian naira Floated. On Friday June 17, 2016, the Central Bank of Nigeria (CBN) abandoned the Nigerian naira's (NGN) fixed exchange rate and allowed the currency to float. Previously fixed against the U.S. dollar at NGN 198.37 = 1.00 USD, the naira closed at NGN 280.55/USD on Monday June 20, the first day of trading following the float. The naira quickly floated (sunk) to NGN 325.58/USD by August 18. Similarly, the naira fell from NGN 218.4413 = 1.00 EUR to NGN 317.7786/EUR on June 20, and NGN 349.9772/EUR on August 18. a. What was the percentage change in the value of the Nigerian naira versus the dollar the first trading day? b. What was the percentage change in the value of the naira versus the dollar by August 18, 2016? c. What was the percentage change in the value of the Nigerian naira verus the euro the first trading day? d. What was the percentage change in the value of the naira versus the euro by August 18, 2016? a. What was the percentage change in the value of the Nigerian naira versus the dollar the first trading day? The percentage change in the value of the Nigerian naira versus the dollar the first trading day was %. (Round to two decimal places.)

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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