Current exchange rate for changing dollar into 1,000units of pounds. Introduction: Exchange Rate: The exchange rate is that rate in which price of the country currency is measured in the term of the other country. There are two methods of calculating the exchange rate direct and indirect. Direct exchange method: One unit price of the foreign currency is defined in term of domestic currency Indirect method: One unit price of the domestic currency is defined in term of the foreign currency.

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Answer 1

Question

Chapter 17, Problem 6P

a.

Summary Introduction

To explain: Current exchange rate for changing dollar into 1,000units of pounds.

Introduction:

Exchange Rate:

The exchange rate is that rate in which price of the country currency is measured in the term of the other country. There are two methods of calculating the exchange rate direct and indirect.

Direct exchange method: One unit price of the foreign currency is defined in term of domestic currency

Indirect method: One unit price of the domestic currency is defined in term of the foreign currency.

b.

Summary Introduction

To explain: The percentage gain or loss between May 29, 2015, exchange rate and the current exchange rate.

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Introduction to Exchange Rates and the Foreign Exchange Market - EOC Refer to the exchange rates given in the table to answer the questions. Please round your answer to the nearest ten thousandths. Country (currency) January 20, 2016 FX per $ January 20, 2015 FX per £ FX per € FX per $ Australia (dollar) 1.459 2.067 1.414 1.223 Canada (dollar) 1.451 2.056 1.398 1.209 Denmark (krone) 6.844 9.694 7.434 6.430 Eurozone (euro) 0.917 1.299 1.000 0.865 Hong Kong (dollar) 7.827 11.086 8.962 7.752 India (rupee) 68.05 96.39 71.60 61.64 Japan (yen) 116.38 164.84 136.97 118.48 Mexico (peso) 18.60 26.346 16.933 14.647 Sweden (krona) 8.583 12.157 9.458 8.181 United Kingdom (pound) 0.706 1.000 0.763 0.600 United States (dollar) 1.000 1.416 1.156 1.000 a. What was the US dollar to Japanese yen exchange rate on January 20, 2016? 116.38 Es Incorrect b. What was the US dollar to Japanese yen exchange rate on January 20, 2015? ES: 118.48 Incorrect c. What was the percentage change in the value of the US…

Table 2 gives the exchange rate quotations for the U.S. dollar and the British pound. Table 2. Foreign Exchange Quotations Britain (Pound) 30-day Forward 60-day Forward 180-day Forward U.S. Dollar Equivalent Tuesday 1.3448 1.3392 1.3278 1.3128 Monday 1.3561 1.3507 1.3401 1.3260 Currency Per U.S. Dollar Tuesday Monday 0.7436 0.7374 0.7467 0.7404 0.7531 0.7462 0.7617 0.7541 (a) If you were to buy pounds for immediate delivery, what is the dollar cost of each pound on Tuesday? (b) If you were to sell dollars for immediate delivery, what is the pound cost of each dollar on Tuesday? (c) Regarding the Tuesday quotations: compared to the cost of buying 100 pounds on the spot market, if 100 pounds were bought for future delivery in 180 days the dollar cost of the pounds would be how much higher or lower (if lower, enter as a negative number)?

TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the US Dollar is equal to each of the currencies below it. Therefore $1 = .76 £ or $1 = .89 €. Exchange Rate Table for Month 1 US Dollar $1 = British Pound 1 £ = Chinese Yuan 1 Y = Japanese Yen 1 ¥ = Euro 1€ US Dollar --- 1.32 .16 .0088 1.13 British Pound .76 --- .12 .0067 .85 Chinese Yuan 6.37 8.46 --- .056 7.21 Japanese Yen 113.04 149.55 17.75 --- 127.55 Euro .89 1.17 .14 .0078 --- Exchange Rate Table for Month 2 US Dollar $1 = British Pound 1 £ = Chinese Yuan 1 Y = Japanese Yen 1 ¥ = Euro 1€ US Dollar --- 1.40 .20 .0080 1.17 British Pound .70 --- .11 .0065 .89 Chinese Yuan 6.20 8.72 --- .062 7.59 Japanese Yen 116.24 146.89 16.32 --- 117.2 Euro .92 1.11 .15 .0078 --- A currency depreciates (or gets…

Answer 2

Question

Chapter 17, Problem 6P

a.

Summary Introduction

To explain: Current exchange rate for changing dollar into 1,000units of pounds.

Introduction:

Exchange Rate:

The exchange rate is that rate in which price of the country currency is measured in the term of the other country. There are two methods of calculating the exchange rate direct and indirect.

Direct exchange method: One unit price of the foreign currency is defined in term of domestic currency

Indirect method: One unit price of the domestic currency is defined in term of the foreign currency.

b.

Summary Introduction

To explain: The percentage gain or loss between May 29, 2015, exchange rate and the current exchange rate.

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Answer 3

Question

Chapter 17, Problem 6P

a.

Summary Introduction

To explain: Current exchange rate for changing dollar into 1,000units of pounds.

Introduction:

Exchange Rate:

The exchange rate is that rate in which price of the country currency is measured in the term of the other country. There are two methods of calculating the exchange rate direct and indirect.

Direct exchange method: One unit price of the foreign currency is defined in term of domestic currency

Indirect method: One unit price of the domestic currency is defined in term of the foreign currency.

b.

Summary Introduction

To explain: The percentage gain or loss between May 29, 2015, exchange rate and the current exchange rate.

Expert Solution & Answer

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Answer 4

Question

Chapter 17, Problem 6P

a.

Summary Introduction

To explain: Current exchange rate for changing dollar into 1,000units of pounds.

Introduction:

Exchange Rate:

The exchange rate is that rate in which price of the country currency is measured in the term of the other country. There are two methods of calculating the exchange rate direct and indirect.

Direct exchange method: One unit price of the foreign currency is defined in term of domestic currency

Indirect method: One unit price of the domestic currency is defined in term of the foreign currency.

b.

Summary Introduction

To explain: The percentage gain or loss between May 29, 2015, exchange rate and the current exchange rate.

Expert Solution & Answer

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Answer 5

Chapter 17, Problem 6P

a.

Summary Introduction

To explain: Current exchange rate for changing dollar into 1,000units of pounds.

Introduction:

Exchange Rate:

The exchange rate is that rate in which price of the country currency is measured in the term of the other country. There are two methods of calculating the exchange rate direct and indirect.

Direct exchange method: One unit price of the foreign currency is defined in term of domestic currency

Indirect method: One unit price of the domestic currency is defined in term of the foreign currency.

b.

Summary Introduction

To explain: The percentage gain or loss between May 29, 2015, exchange rate and the current exchange rate.

Answer 6

Chapter 17, Problem 6P

a.

Summary Introduction

To explain: Current exchange rate for changing dollar into 1,000units of pounds.

Introduction:

Exchange Rate:

The exchange rate is that rate in which price of the country currency is measured in the term of the other country. There are two methods of calculating the exchange rate direct and indirect.

Direct exchange method: One unit price of the foreign currency is defined in term of domestic currency

Indirect method: One unit price of the domestic currency is defined in term of the foreign currency.

Answer 7

Chapter 17, Problem 6P

a.

Summary Introduction

To explain: Current exchange rate for changing dollar into 1,000units of pounds.

Introduction:

Exchange Rate:

The exchange rate is that rate in which price of the country currency is measured in the term of the other country. There are two methods of calculating the exchange rate direct and indirect.

Direct exchange method: One unit price of the foreign currency is defined in term of domestic currency

Indirect method: One unit price of the domestic currency is defined in term of the foreign currency.

Answer 8

b.

Summary Introduction

To explain: The percentage gain or loss between May 29, 2015, exchange rate and the current exchange rate.

Answer 9

b.

Summary Introduction

To explain: The percentage gain or loss between May 29, 2015, exchange rate and the current exchange rate.

Answer 10

Expert Solution & Answer

Answer 11

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Answer 12

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Answer 13

Ch. 17 - Why do U.S. corporations build manufacturing...Ch. 17 - If the euro depredates against the U.S. dollar,...Ch. 17 - Prob. 3Q Ch. 17 - Should firms require higher rates of return on...Ch. 17 - Prob. 5Q Ch. 17 - Prob. 6Q Ch. 17 - Prob. 7Q Ch. 17 - Prob. 1P Ch. 17 - Prob. 2P Ch. 17 - Prob. 3P

Solution Summary: The author explains how to calculate the exchange rate for changing dollar into 1,000 units of pounds.

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To explain: The percentage gain or loss between May 29, 2015, exchange rate and the current exchange rate.

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