Question
In: Finance
Suppose the spot rate of Polish Zloty to the US dollar is 4.0 and the forward...
Suppose the spot rate of Polish Zloty to the US dollar is 4.0 and the forward rate in the 180 day market of the Polish Zloty is 3.5 per dollar. The Polish Zloty is then selling at a _____________ to the spot rate. Express your answer as a decimal not a percentage.
Solutions
jeff jeffy answered 7 months agoRelated Solutions
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The 90-day interest rate is 1.5% in the US and 4% in India. The
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The current spot rate for the JPY is INR 1.55. The expected
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Suppose the spot exchange rate for the Canadian dollar is Can$1.29 and the six-month forward rate...
Suppose the spot exchange rate for the Canadian dollar is
Can$1.29 and the six-month forward rate is Can$1.31.
a.
Which is worth more, a U.S. dollar or a Canadian dollar?
U.S. dollar
Canadian dollar
b.
Assuming absolute PPP holds, what is the cost in the United
States of an Elkhead beer if the price in Canada is Can$2.50?
(Round your answer to 2 decimal places, e.g.,
32.16.)
c.
Is the U.S. dollar selling at a premium or a...
Suppose that the current spot exchange rate between the US dollar and NZ dollar is $.70/NZ$...
Suppose that the current spot exchange rate between the US
dollar and NZ dollar is $.70/NZ$ and the 1-year forward rate is
$.695. The one year interest rates are 1% for the USD and 3% for
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1,022,643
$1,010,000
$985,857
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assume the Canadian dollar spot rate is 1.18c$/us$, the swiss spot rate is 1.29CHF/us$ and the...
assume the Canadian dollar spot rate is 1.18c$/us$, the swiss
spot rate is 1.29CHF/us$ and the market cross rate is 1.11 chf/c$
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with
The existing spot rate of the Singapore dollar is $.62. The one‑year forward rate of the...
The existing spot rate of the Singapore dollar is $.62. The
one‑year forward rate of the Singapore dollar is $.61. The
probability distribution of the future spot rate in one year is
forecasted as follows:
Future
Spot
Rate Probability
$.60 25%
.63 45
.65 30
Assume that one‑year put options on Singapore dollars are
available, with an exercise price of $.64 and a premium of $.04 per
unit. One‑year call options on Singapore dollars are available with
an exercise price of $.61 and a...
The spot rate for the Singapore dollar is £0.320 and the 30-day forward rate is £0.325....
The spot rate for the Singapore dollar is £0.320 and the 30-day
forward rate is £0.325. At what discount or premium is Singapore
dollar
selling?
The existing spot rate of the Singapore dollar is $.62. The one‑year forward rate of the...
The existing spot rate of the Singapore dollar is $.62. The
one‑year forward rate of the Singapore dollar is $.61. The
probability distribution of the future spot rate in one year is
forecasted as follows:
Future
Spot
Rate Probability
$.60 25%
.63 45
.65 30
Assume that one‑year put options on Singapore dollars are
available, with an exercise price of $.64 and a premium of $.04 per
unit. One‑year call options on Singapore dollars are available with
an exercise price of $.61 and a...
The existing spot rate of the Singapore dollar is $.62. The one‑year forward rate of the...
The existing spot rate of the Singapore dollar is $.62. The
one‑year forward rate of the Singapore dollar is $.61. The
probability distribution of the future spot rate in one year is
forecasted as follows:
Future
Spot
Rate Probability
$.60 25%
.63 45
.65 30
Assume that one‑year put options on Singapore dollars are
available, with an exercise price of $.64 and a premium of $.04 per
unit. One‑year call options on Singapore dollars are available with
an exercise price of $.61 and a...
Use the following information on the U.S. dollar value of the euro. Spot Rate Forward Rate...
Use the following information on the U.S. dollar value of the
euro.
Spot Rate
Forward Rate for
April 30, 2021 Delivery
October 30, 2020
$ 1.230
$ 1.240
November 1, 2020
1.248
1.245
December 31, 2020
1.260
1.265
April 30, 2021
1.270
1.270
On October 30, 2020, a U.S. company receives a purchase order from
a customer in Spain. Under the sale terms, the customer will pay
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Suppose that the $/€ spot exchange rate is 1.20 $/€ and the 1 forward rate is...
Suppose that the $/€ spot exchange rate is 1.20 $/€ and the 1
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Bills are U.S 10% and EU 7%. Use the exact form interest parity
condition. Note that these numbers are hypothetically constructed
to give arbitrage profits.
(1) Calculate the covered interest differentials using Covered
IPC (extra profits from investing in EU).
(2) Suppose that U.S. investor is considering a covered
investment in EU Treasury bills financed...
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