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Excel Solutions - Chapter 22

# Excel Solutions - Chapter 22 - Chapter 22 Problems 1-15...

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Unformatted text preview: Chapter 22 Problems 1-15 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green Chapter 22 Question 1 Input Area: a. Cash \$100 Euro value per \$ € 1.2186 b. \$ value per euro \$0.8206 c. Euro amount € 5,000,000 f. Pesos per \$ 11.4850 Output Area: a. Euros € 82.0614 b. One euro \$1.2186 c. Dollar value \$6,093,103 d. More worth Singapore dollar e. More worth Mexican peso f. # of Pesos/Euro 13.9959 This is a cross rate. g. Most valuable = Kuwait Dinar = \$3.3920 Least valuable = Turkish Lira = \$.00000067 Chapter 22 Question 2 Input Area: SF 100 £ £100 US dollars \$100 SF value per \$ 0.8008 Pounds per \$ £1.8301 Output Area: £ 100, since \$54.642 £ 100, since (SF) 43.7572 Cross rate SF/£ 0.4376 Cross rate £/SF 2.2853 Chapter 22 Question 3 Input Area: Spot ¥/\$ rate 107.9000 6 month ¥/\$ rate 106.8600 Spot \$/C\$ rate 1.3468 3 month \$/C\$ rate 1.3497 Output Area: The yen is selling at a premium because it is more expensive in the forward market than in the spot market \$0.0092678 versus \$0.0093580 The C\$ is selling at a discount because it is less expensive in the forward market than in the spot market \$0.7425007 versus \$0.7409054 The value of the dollar will fall relative to the yen. The value of the dollar will rise relative to the Canadian dollar. Chapter 22 Question 4 Input Area: Spot exchange rate for CD \$1.26 6-month forward rate for CD \$1.22 Price of beer in Canada \$2.19 Output Area: a. The U.S. dollar, since C\$ = \$0.7937 b. Price of beer in U.S. \$1.7381 Among the reasons that absolute PPP doesn't hold are tariffs and other barriers to trade, transactions...
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Excel Solutions - Chapter 22 - Chapter 22 Problems 1-15...

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