Pbm10 - Problem 5.1 Brazilian real Assumptions Values Spot...

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Unformatted text preview: Problem 5.1 Brazilian real Assumptions Values Spot rate, Monday January 11, 1999, R$/$ 1.21 Spot rate, Friday January 15, 1999, R$/$ 1.43 Calculation percentage appreciation or depreciation Percentage change in the real versus the dollar-15.38% Because the real fell in value: Depreciation The Brazilian reais' (R$) value was R$1.21/$ on Monday January 11, 1999. Its value fell to R$1.43/$ on Friday January 15, 1999. What was the percentage change in its value? Problem 5.2 Turkish lira Assumptions Values Spot rate, February 20, 2001 (TL/$) 68,000 Turkish government announces a devaluation of:-20.00% Spot rate, February 24, 2001 (TL/$) 100,000 a. What was the exchange rate after devaluation? Spot rate after devaluation 85,000 Check calculation: percentage change in values-20.0% b. What was percentage change after falling to TL100,000/$? Percentage change from initial value-32.0% Percentage change from "devalued" value-15.0% The Turkish lira (TL) was officially devalued by the Turkish government in February 2001 during a severe political and economic crisis. The Turkish government announced on February 21st that the lira would be devalued by 20%. The spot exchange rate on February 20th was TL68,000/$. Problem 5.3 Mexican peso Assumptions Values Spot rate, December 20, 1994 (Ps/$) 3.30 Spot rate, December 21, 1994 (Ps/$) 5.50 Calculation percentage of devaluation: Percentage change in the peso versus the dollar-40.00% The Mexican peso (Ps) was trading at Ps3.30/$ on December 20, 1994. It was devalued by the Mexican government to Ps5.50$ the next day. What was the percentage devaluation? Problem 5.4 Russian ruble Assumptions Values Spot rate, August 7, 1998 (Rub/$) 6.25 Spot rate, September 10, 1998 (Rub/$) 20.00 Calculation of percentage change: Percentage change in the peso versus the dollar-68.75% The Russian ruble ( R) traded at R6.25/$ on August 7, 1998. By September 10, 1998, its value had fallen to R20.00/$. What was the percentage change in its value? Problem 5.5 Thai baht Assumptions Values Opening spot rate, July 2, 1997 (Bt/$) 25.00 Closing spot rate, July 2, 1997 (Bt/$) 29.00 Calculation of percentage change: Percentage change in the baht versus the dollar-13.79% The Thai baht (Bt) was devalued by the Thai government from BT25/$ to BT29/$ on July 2, 1997. What was the percentage devaluation of the baht? Problem 5.6 Ecuadorian sucre Assumptions Values Initial spot rate, 1999 (Sucre/$) 5,000 Ending spot rate, 1999 (Sucre/$) 25,000 Calculation of percentage change: Percentage change in the sucre versus the dollar-80.00% The Ecuadorian sucre (S) suffered from hyper-inflationary forces throughout 1999. Its value moved from S5,000/$ to S25,000/$. What was the percentage change in its value? Problem 5.7 Forecating the Argentine peso "Eye-balled" Date Values February 1st (Ps/$) 2.00 February 28th (Ps/$) 2.20 Percent change -9.09% If peso continued to fall at same rate for 1 month: March 1, 2002 (Ps/$) 2.20 Percent change-9.09% March 30, 2002 (Ps/$) 2.42 2....
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This note was uploaded on 07/10/2011 for the course BUS 464 taught by Professor Pham during the Spring '11 term at Humboldt State University.

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Pbm10 - Problem 5.1 Brazilian real Assumptions Values Spot...

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