eoc_chapter_18 - Chapter 18 Problems 1-16 Input boxes in...

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Chapter 18 Problems 1-16 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
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Chapter 18 Question 1 Input Area: a. Cash $100 $ per zloty $4.2190 b. Euro value per $ 0.9945 c. $ value per euro $1.0055 Euro amount 5,000,000 f. SFr per $ 1.4816 Output Area: a. # of zlotys 421.90 b. One euro $0.9945 c. Dollar value $5,027,500 d. More worth Singapore dollar e. More worth Mexican peso f. # of SFr/Euro 1.4734 This is a cross rate. g. Most valuable = Kuwait Dinar = $3.319 Least valuable = Turkish Lira = $.00000060
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Chapter 18 Question 2 Input Area: British pound £100 U.S. dollar $100 Canadian dollar $100 £ value per $ 0.6456 C$ value per US$ 1.5120 $ value per £ $1.5489 $ value per C$ $0.6614 Output Area: £ 100, since $154.89 £ 100, since (C$) $66.14 Cross rate C$/£ 2.3419 Cross rate £/C$ 0.4270
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Question 3 Input Area: Spot ¥/$ rate 117.8900 6 month ¥/$ rate 116.7500 Spot $/C$ rate 0.6614 3 month $/C$ rate 0.6596 Output Area: The yen is selling at a premium because it is more expensive in the forward market than in the spot market $0.0084825 versus $0.0085653 The US$ is selling at a premium because it is more expensive in the forward market than in the spot market (C$ needed to purchase 1 US$) $1.5119444 versus $1.5160703 The value of the dollar will fall relative to the yen.
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This note was uploaded on 05/01/2009 for the course FINC 106 taught by Professor Dr.nehale during the Spring '09 term at Baptist College of Health Sciences.

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eoc_chapter_18 - Chapter 18 Problems 1-16 Input boxes in...

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