Currency Conversion Problem Sets All

# Currency Conversion Problem Sets All - Solution Currency...

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Solution: Currency Conversion Problem Set #1 Currency Quotes Direct or Indirect ? Swiss Francs 1 SF for \$0.50 Direct Mexican Pesos 10 MP for 1 USD Indirect British pounds 0.75 BP for 1 USD Indirect 1. \$3,000,000 can be converted into 2,250,000 British pounds 3,000,000 x 0.75 = BP 2,250,000 2. SF 1,500,000 can be into 750,000 USD 1,500,000 x 0.50 = \$ 750,000 3. MP 600,000 can be converted into 240,000 Swiss Francs MP 600,000 / 10 = \$ 60,000 \$ 60,000 / 0.50 = SF 120,000 4a. How many SF does it take to buy 1 BP ? BP DQ = 1 / 0.75 = 1.33 ; SF DQ = 0.50 BP DQ / SF DQ = 1.33 / 0.50 = SF 2.67 4b. How many BP does it take to buy 1 SF ? SF DQ / BP DQ = 0.50/1.33 = BP 0.375 Solution: Currency Conversion Problem Set #2 1/1/X0 1/1/X1 DQ/IQ ? BP quotes \$2.00 per BP \$2.18 per BP DQ SF quotes SF 2.50 per USD SF 2.00 per USD IQ JY quotes JY 100 per USD JY 120 per USD IQ For the time period: 1/1/X0 - 1/1/X1, please calculate: 1. The percentage appreciation / depreciation of BP in terms of the USD We need % change in DQ =

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## This note was uploaded on 04/15/2011 for the course FINA 5500 taught by Professor Staff during the Spring '08 term at North Texas.

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Currency Conversion Problem Sets All - Solution Currency...

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