Suppose that the indirect quotation for Egyptian pound is 20. The exchange rate for Egyptian pound...

Suppose that the indirect quotation for Egyptian pound is 20. The exchange rate for Egyptian pound is 23 EGP per GBP. What is the direct quotation of GBP?

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jeff jeffy answered 2 years ago

Josef Samir is an investor in the Egyptian Exchange (EGX). He invests E£5,000 (Egyptian pound) in...

Josef Samir is an investor in the Egyptian Exchange (EGX). He invests E£5,000 (Egyptian pound) in a cement company and receives dividends of E£65, 75, 76, and 76 over the next four years. At the end of the four years, he sells the stock for E£8,000. What is the IRR on this investment?

What is the indirect quotation for the British pound at US1.3505? A. 0.7405 B. 0.8202 C....

What is the indirect quotation for the British pound at US1.3505? A. 0.7405 B. 0.8202 C. 0.7768 D. None 1 points QUESTION 24 A decrease in the current account deficit will place_____________ pressure on the home currency value, other things equal A. upward B. downward C. No D. upward or downward (depending on the size of the deficit) 1 points QUESTION 25 If a country experiences low inflation relative to the US, its exports to the US should______________...

Suppose the current exchange rate is $ 1.84 divided by pound, the interest rate in the...

Suppose the current exchange rate is $ 1.84 divided by pound, the interest rate in the United States is 5.24 %, the interest rate in the United Kingdom is 3.81 %, and the volatility of the $/£ exchange rate is 10.3 %. Use the Black-Scholes formula to determine the price of a six-month European call option on the British pound with a strike price of $ 1.84 divided by pound.

1. Suppose that current U.S-UK exchange rate is 0.63 pound (the pound is the UK currency)...

1. Suppose that current U.S-UK exchange rate is 0.63 pound (the pound is the UK currency) per dollar, and the aggregate price level is 170 for the U.S and 140 for the UK a. What is the U.S real exchange rate? (round answer to three decimal places) 2. What does this real exchange rate mean in terms of the relative purchasing power of the dollar and the pound? a. The US dollar buys less stuff in the UK than it...

How does forward exchange rate differ from spot exchange rate? Suppose £ represents British pound and...

How does forward exchange rate differ from spot exchange rate? Suppose £ represents British pound and ¥ represents Japanese yen. If E¥/£ = 150 in Tokyo while E¥/£ = 155 in London. How would you do arbitrage to make a profit? What is the meaning of covered interest parity? How do you use it to determine the forward exchange rate? What is the meaning of uncovered interest parity? How do you use it to determine the spot exchange rate?

1. The peso/pound exchange rate is Mex$16/£ while the euro/pound exchange rate is €1.15/£ . You...

1. The peso/pound exchange rate is Mex$16/£ while the euro/pound exchange rate is €1.15/£ . You also observe that the actual peso/euro cross exchange rate is Mex$12/€ . Find the triangular arbitrage profit (in pounds) available to someone that has access to £3,000,000. Round intermediate steps to four decimals and your final answer to two decimals. Do not use the dollar sign when entering your answer. 2. Which of the following would occur to eliminate the arbitrage opportunity? a. No...

1)Suppose that the Fed is fixing the dollar-pound exchange rate at $2.75 = £1. If the...

1)Suppose that the Fed is fixing the dollar-pound exchange rate at $2.75 = £1. If the Fed's reserve of pounds falls by £100 million, by how much would the supply of dollars increase, all other things equal? a)275 million b)500 million c)0 d)-500 million 2) In 2009, the United States: a)imported more services than it exported. b)imported more goods than it exported. c)traded mainly with developing nations such as Mexico and India. d)had a small trade surplus in goods and...

Suppose that the exchange rate (spot price) of Euro in GBP (British Pound) is GBP 0.95. ...

Suppose that the exchange rate (spot price) of Euro in GBP (British Pound) is GBP 0.95. In addition, assume that you can freely borrow and lend in GBP for any maturity at a rate of 2% per annum and that you can do the same in Euro at a rate of 1% per annum. Both rates are continuously compounded rates. Given these assumptions: Compute the forward price (exchange rate) of the GBP in Euro for delivery of the GBP in...

The current spot exchange rate is $ 1.93/pound and the three-month futures rate is $1.90/pound. Assume...

The current spot exchange rate is $ 1.93/pound and the three-month futures rate is $1.90/pound. Assume that you would like to buy or sell British Pound for the amount of 1,000,000 pounds. On the basis of your analysis of the exchange rate, you are pretty confident that the spot exchange rate will be $1.91/pound in three months. (a) What actions do you need to take to speculate in the futures market? And what is the expected dollar profit from speculation?...

define the following terms- Official Reserve Account- Direct Quotation- Indirect Quotation

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