EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 2, Problem 12P
Summary Introduction
To determine: The % change in the value of the following currencies.
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The following are quotes for four currencies with the quote in terms of US dollars per unit. Complete the values in the second column:
Currency
Units Per US Dollars
US Dollars Per Unit
EUR (eur)
?
1.1325477382
GBP (British pound)
?
1.3077000000
INR (Indian rupee)
?
0.0148968912
AUD (Australian dollar)
?
0.76263500000
Given the information below, what is the cross-rate of the Singapore dollar in euros (i.e., Euros /Singapore dollar? Enter your answer with two decimals.
Singapore dollar in US dollars (USD/SGD)
0.73
Euro in US dollars (USD/EUR)
1.26
Singapore dollar in euros (EUR/SGD)
0.65
Dollar Peg for Hong Kong. The Hong Kong dollar (HKD) has long been pegged to the U.S. dollar (USD) at HKD7.80 = USD1.00. When the Chinese yuan (CNY) was revalued in July 2005 against the U.S. dollar from CNY8.28 = USD1.00 to CNY8.11 = USD1.00, how did the value of the Hong Kong dollar change against the yuan?
Chapter 2 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Ch. 2.A - Prob. 1QTDCh. 2.A - Prob. 2QTDCh. 2.A - Prob. 3QTDCh. 2.A - Prob. 1PCh. 2.A - Prob. 2PCh. 2.A - Prob. 3PCh. 2.A - Prob. 4PCh. 2.A - Prob. 5PCh. 2.A - Prob. 6PCh. 2.A - Prob. 7P
Ch. 2.A - Prob. 8PCh. 2 - Prob. 1QTDCh. 2 - Prob. 2QTDCh. 2 - Prob. 3QTDCh. 2 - Prob. 4QTDCh. 2 - Prob. 5QTDCh. 2 - Prob. 6QTDCh. 2 - Prob. 7QTDCh. 2 - Prob. 8QTDCh. 2 - Prob. 9QTDCh. 2 - Prob. 10QTDCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13P
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- These are currency quotes found on a foreign market: GH 4.30/$, and GH 4.55/$. ii. Which currency is depreciating in value?arrow_forwardUsing the currency cross rate table, convert C$300.00 to Japanese yen. Canadian dollar U.S. dollar Euro Japanese yen British pound Australian dollar Canadian U.S. Euro Japanese British Australian dollar dollar yen pound dollar 1.5792 0.0129 2.2735 1.1601 0.0078 1.6624 0.0083 1.4355 197.1834 1.4103 0.7091 0.6332 0.8620 77.5194 128.2051 120.4819 0.4399 0.6015 0.6966 1.1012 1.4945 1.7319 C$300.00 will purchase Japanese yen. (Round to the nearest yen as needed.) 0.0051 0.0126 2.4907 0.9081 0.6691 0.5774 79.4098 0.4015arrow_forwardBased on the table below, which currencies depreciated between January and March? Name of Currency Exchange Rate JANUARY $1 = Exchange Rate MARCH $1 = Romanian Leu 4.37 4.30 South African Rand 16.14 18.18 Swedish Krona 9.15 9.10 Tunisian Dinar 2.88 2.92 a. South African Rand b. Tunisian Dinar c. Romanian Leu d. Swedish Kronaarrow_forward
- 1. Based on the latest exchange rates, how much does one US$, Euro, British Pound, Mexican Peso, and Japanese Yen cost in CAD$ - Rounded to four decimal places. (Please provide the website and date when you retrieved your data!)arrow_forwardProblem 1. A currency trader has compiled the following currency quotes: USD/EUR ($/Euro USD/GBP ($/£) JPY/USD (Â¥) Spot rate $1.2139 $1.7730 115.674 6-month forward rate $1.2067 $1.7894 114.867 Which of the following statements regarding currencies is CORRECT? A) The pound is strong relative to the dollar and the dollar is strong relative to the yen. B) The euro is strong relative to the dollar and the yen is weak relative to the dollar. C) The euro is weak relative to the dollar and the yen is strong relative to the dollar. D) The dollar is strong relative to the pound and the dollar is weak relative to the euro. Problem 2. Mary Beth Morgan and Shaban Shoshi are currency traders for Mercury Forex Inc. They have compiled the following information concerning currencies in Sweden (SEK), New Zealand (NZD), and United States (USD). SEK/USD USD/NZD Spot bid rate 7.8927 $0.6994 Spot ask rate 7.9021 $0.7000 3-month forward bid rate 7.8780 $0.7010 3-month forward ask rate…arrow_forwardOn January 1, 2021, Euro and USD exchange rate was 1.23 USD/EUR. Today, the Euro exchange rate is 0.83 EUR/USD. Can you tell if EUR has appreciated or depreciated relative to USD from January 1 to today? How much is the change in Euro currency value relative to USD? A.Euro has appreciated 32% relative to USD. B.Euro has depreciated 2% relative to USD. C.Euro has depreciated 32% relative to USD. D.Euro has appreciated 2% relative to USD.arrow_forward
- These are currency quotes found on a foreign market: GH 4.30/$, and GH 4.55/$. Which currency is appreciating in value?arrow_forwardUse the following chart to answer the next two questions. 2/17 2/18 2/19 £.8/S $1.30/£ £9/S ¥125/S ¥122/S S.007/N €1.1/S €/S.85 $.95/E What is the percentage appreciation/depreciation of the Euro from the US point of view from 2/17 to 2/18? Round intermediate steps and your final answer to four decimals. Express your answer in decimal format (ex. XXXX)arrow_forwardThe following table shows hypothetical monthly exchange rates for the Canadian dollar and the euro, as well as the standard deviation of the percentage changes for each currency. Use the table to select the percent change from May 1 to June 1 in the Canadian dollar exchange rate and the euro exchange rate. Month January 1 February 1 March 1 April 1 May 1 June 1 July 1 Standard Deviation Value of the Canadian Dollar (US Dollars per Canadian Dollar) $0.62 0.63 In this example, the value of the 0.64 0.66 0.67 0.65 0.66 Monthly Percent Change in Canadian Dollar Value 1.61% 1.59% 3.13% 1.52% 1.54% 2.08% The percentage change in the Canadian dollar from May 1 to June 1 represents no change a depreciation an appreciation Value of Euro (US Dollars per euro) $1.14 1.18 was more volatile over the entire time period. 1.22 1.19 1.18 1.21 1.25 Monthly Percent Change in Euro Value 3.51% 3.39% -2.46% -0.84% 3.31% 2.57% in the value of the Canadian dollar.arrow_forward
- Given the following exchange rates, calculate the percentage change in the USD value relative to the Chinese yuan (CNY) in 2020. January 1, 2020: 7.05 CNY/USD December 31, 2020: 0.1608 USD/CNY Pick the closest answer from the choices below. A. USD depreciated 11.8% relative to Chinese yuan in 2020. B. USD appreciated 13.4% relative to Chinese yuan in 2020. C. USD depreciated 13.4% relative to Chinese yuan in 2020. D. USD appreciated 11.8% relative to Chinese yuan in 2020.arrow_forwardUse the information below to answer the following questions. U.S. $ EQUIVALENT CURRENCY PER U.S. $ Polish Zloty .2994 3.3406 Euro 1.2456 .8028 Mexican Peso .0752 13.2998 Swiss Franc 1.0352 .9660 Chilean Peso .002071 482.80 New Zealand Dollar .8080 1.2376 Singapore Dollar .8004 1.2494 a. If you have $275, how many Polish zloty can you get? (Do not include the Polish zloty sign (Z). Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much is one euro worth in U.S. dollars? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) c. If you have 4.10 million euros, how many dollars do you have? (Do not round intermediate calculations and round your answer to…arrow_forwardThe following table shows hypothetical monthly exchange rates for the Canadian dollar and the euro, as well as the standard deviation of the percentage changes for each currency. Use the table to select the percent change from May 1 to June 1 in the Canadian dollar exchange rate and the euro exchange rate. Month January 1 February 1 March 1 April 1 May 1 June 1 July 1 Standard Deviation Value of the Canadian Dollar (US Dollars per Canadian Dollar) $0.62 0.63 0.64 0.66 0.67 0.65 0.66 Monthly Percent Change in Canadian Dollar Value 1.61% 1.59% 3.13% 1.52% -2.99% 1.54% 2.08% Value of Euro (US Dollars per euro) $1.14 1.18 1.22 1.19 1.18 1.21 1.25 The percentage change in the Canadian dollar from May 1 to June 1 represents a depreciation In this example, the value of the Canadian dollar was more volatile over the entire time period. Monthly Percent Change in Euro Value 3.51% 3.39% -2.46% -0.84% 2.79% 3.31% 2.57% in the value of the Canadian dollar.arrow_forward
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