Chap10_Pbms

# Chap10_Pbms - Problem 10.2 Brazilian Reais The Brazilian...

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Problem 10.2 Brazilian Reais 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 Percent change = (Old Rate - New Rate ) / (New Rate) 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?

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Problem 10.3 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 10.5 Seis Anos Assumptions Rate Values Spot rate, December 20, 1994 (Ps/\$) S1 3.30 Spot rate, December 21, 1994 (Ps/\$) S2 5.50 Calculation percentage of devaluation: Percentage change in the peso versus the dollar -40.00% Mexico was famous – or infamous – for many years in having two things every six years (seis anos in Spanish): a presidential election and a currency devaluation. This was the case in 1976, 1982, 1988, and 1994. In its last devaluation on December 20, 1994, the value of the Mexican peso (Ps) was officially changed from Ps3.30/\$ to Ps5.50/\$. What was the percentage devaluation? Percent change = ( S1 - S2 ) ÷ ( S2 ) The peso since that time, and we have now weathered two additional six-year dates (2000 and 2006), has been remarkable stable against all major currencies, including the dollar.

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Problem 10.6 Russian Ruble Assumptions Rate Values Spot rate, August 7, 1998 (Rub/\$) S1 6.25 Spot rate, September 10, 1998 (Rub/\$) S2 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
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Chap10_Pbms - Problem 10.2 Brazilian Reais The Brazilian...

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