The euro-pound cross exchange rate can be computed as: A. S(E/E) = S($/E) × S(€/S) %3D B. S($/£) S(E/S) S(€/£) = S(€/£) = S($/€) S(£/S) D. all of the above
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![The euro-pound cross exchange rate can be computed as:
A. S(E/E) = S($/E) × S(€/S)
%3D
B.
S($/£)
S(E/S)
S(€/£) =
S(€/£) =
S($/€)
S(£/S)
D. all of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd5338478-3daf-417c-bde7-382ef491c310%2F2d740ce7-202e-4091-8f76-bd6bc6b7a270%2Fpuexdgg_processed.png&w=3840&q=75)
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- A UK-manufactured car sells for GBP 14.000. A french-manufactured car sells for EUR 15.750. If the EUR/GBP exchange rate is 1.17, how much does the british-made car cost in EUR? a. 18.427 b. 11.965 c. 13.462 d. 16.380What is the cross exchange rate of GBP:1.2884 and CHF: 0.9777?A Palestinian resident can earn 3 percent interest on a one-year bank deposit of $50,000 at home. Alternatively, he can convert the $50,000 into euros and earn 4 percent on a one-year bank deposit in France. If the exchange rate is initially 0.90 euros per dollar and then changes to 0.89 euros per dollar in one-year, which deposit would have given him a higher return?
- Suppose that a U.S. company wishes to purchase goods from a German producer. The U.S. firm agrees to take the delivery of the goods in three months and to pay €1 million Euros at that time. This company wishes to avoid this exchange rate risk by buying Euros at the 3-month forward rate, f = 0.95 (€/$). Then, how much this company would have to pay in US dollars in exchange for €1 million Euros? a. $1 million dollars. b. $1,052,632 dollars. c. $950,000 dollars.The Central American country of Belize is one of approximately 14 Caribbean community countries that pegs its currency to the U.S. dollar. The pegged rate is 2 Belize dollars equal 1 U.S. dollar (2 BZD = 1 USD or 1 BZD = 0.50 USD). This is illustrated in the figure below. Exchange Rate (USD BZD) 2.00 1.00 0.50 D Quantity of Belize dollars traded per day How will the actions of speculators affect this market? O The Belize dollar supply curve will shift to the right and the Belize dollar demand curve will shift to the left. O The Belize dollar supply curve and the Belize dollar demand curve will shift to the right. O The Belize dollar supply curve will shift to the left and the Belize dollar demand curve shift to the right. The Belize dollar supply curve and the Belize dollar demand curve will shift to the left.2
- Find the following cross rates. a) Chinese Yuan/Japanise Yen (i.e. how many Chinese Yuan are needed to buy 1 Janapise Yen?) b) UK Pound/Mexican Peso (i.e. how many Pounds are needed to buy 1 Peso?)A British money financier is managing €10 million and wants to invest it in safe bonds either in France or United Kingdom for one year. The one-year interest rate on such assets is 0.63% in Britain and 0% in France. The one-year forward euro-pound exchange rate is 1.121 €/£ (euros per pound). Assume that the covered interest parity condition (CIP) always holds and to ensure consistency, treat the UK as home country. What is the current euro-pound spot exchange rate? Explain and show your work.Let’s suppose you (USA dealer) imported one Earth Equipment machine from German dealer on March 1, 2017 at € 300,000 each, payable in 30 days. The exchange rate on March 1, 2017 was 1.16 US$/€. Then you sold the machine in the US market at US$350,000 in cash on March 29, 2017. On April 1, 2017, you paid to Italian car dealer at the exchange rate of 1.19 US$/€. What was profit or loss from this business in terms of US$? (Please assume all costs are included in price.) Group of answer choices -7000 -9200 -4500 -10200
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