exam 2 page1

exam 2 page1 - 6d= il|4l# F (*l As of todaS t d the rates...

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Exam 2 BUS 428: Multinational Financial Management I Fall' 2010 Name: Srrn #yffyL Instructions: r All questions axe multiple choice questions. There a,re L5 questions in total. o Using a No.2 pencil, chsose the best (or most accurate) answer for each question. o When you need to change your answers, erase previous answers completely. o You a,re allowed to use a calculator. Computer is not allowed. o Good luck! 1. Assume a qq!ginal-!!$9l99lrate on one-yeax U.S. Tbeasury of.I%. The one-year nomina,l interest rate in U.K. is 2.5% (a) 0.7353 $: 1t Bills of 5T and a real rate of interest and the spot exchanee rate is $1.4/4. /r\ tr€1F) (b) L.44rz ((,.Ll L = l'1, t)
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Unformatted text preview: 6d= il|4l# F (*l As of todaS t d the rates of inflation e.xpected to prevail for the next year in the LS.it 3% and 6.5% in the euro What is the one-year forward ratq 1.00 : $1.2089 | + "01'b 1.00 : $1.2146 1.00 : S0.8272 1.00 : $0.8233 rate for the Mexican peso is $0.005, then the best estimate of the peso's spot (c) (d) (( s r 3 tr i l , Y r f i t I t b.3'l 61s)- I r( '" "il;i, *,"i \ e l*) Fce/s r /,,^ /*i., ^;\ E t)ttd ('"tt\t'\r' j value in 180 daus is: (a) $0.002e ffi)so.oos+ ff so.ooao (d) $o.oo37 "jf6 = U'i, trnp= 5b?" 1(sl*:'')'".oft gisrroa$ln4o))'-c,5 l+?q litx- qlc-ltr ,/,. .,,, / -H' j r', "' ;;t f i :,i.u I a I (#) | 't {...
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