Nick Jordan TAKE HOME TEST

Nick Jordan TAKE HOME TEST - (.009460-.009425) / .009425 =...

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Nick Jordan MGMT 370 Take home test 1) A) .6840 Euros B) The Euro is worth more than the Swiss Franc C) .9645 Canadian dollars / 1.4620 Euros = .6597 Euros. D) Agree 1.5904(Pounds) is equal to one U.S. Dollar and it is the highest number on the chart so it is worth the most out of all the other countries. 2) British Pounds (1.8454 –1.8469) / 1.8469 = -.000812 or - .08% -.00812 x 12 x 100 = -.97% (discount) Actual Change was (1.5904 –1.8469) / 1.8469 = -.1389 or – 13.89% The forward rate did correctly predict the direction of the change, but was off a lot on the amount. Jappanese Yen
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Unformatted text preview: (.009460-.009425) / .009425 = +.0037 or +.37% .0037 x 12 x 100 = +4.44% (premium) Actual change was (.010571-.009425) / .009425)= .1216 or +12.16% The forward rate correctly did predict the direction of the change but was off a lot on the amount. Canadian Dollar (.9650 - .9645) = .005184 x 12 x 100 = + .62% (Premium) Actual change was (.7857 - .9645) / .9645 = -.19% The forward rate did not correctly predict the direction of the change and was off a lot on the amount. 3) $3.00 US dollars x 1.0368 Canadian = $3.11 canadian x 1.02 = $3.17 Canadian Dollars 4)...
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