Minus sign round your answer to 2 decimal places eg

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minus sign. Round your answer to 2 decimal places (e.g., 32.16).)
F t = S 0 × [1 + (h FC h US )] t We find: R34.50 = R37.78[1 + (h FC h US )] 3 h FC h US = (R34.50/R37.78) 1/3 1 h FC h US = -0.0298 or -2.98% Inflation in Russia is expected to be less than that in the U.S. by -2.98% per year over this period. MC algo 31-21 Interest Rate Parity The spot rate between the Japanese yen and the U.S. dollar is ¥106.57/$, while the one-year forward rate is ¥105.73/$. The one-year risk-free rate in the U.S. is 2.39 percent. If interest rate parity exists, what is the one-year risk-free rate in Japan? Explanation 105.73/106.57 = (1 + R J )/1.0239 R J = .0158, or 1.58% TB MC Qu. 19-8 Purchasing Power Parity If the current... Purchasing Power Parity If the current spot rate between the U.S. dollar and the Swedish krona was $1 = 7.6023 krona, and if the inflation rate in the United States was 5.6 percent and in Sweden it was 2.6 percent, then what would be the expected spot rate in one year? (Round your answer to 4 decimal places.) Explanation Use equation 19-3. But the quote must be a direct quote. The spot direct quote is 1 ÷ 7.6023 = 0.1315. Expected exchange rate = 0.1315 × (1 + 0.056 − 0.026) = $0.1354 per krona Problem 19-18 Interest Rate Parity (LG19-5) The spot rate between the U.S. dollar and the Taiwan dollar is $1 = TWD30.005. Assume the interest rate in the United States is 3 percent and in Taiwan is 2 percent.
What should be the 3-month forward exchange rate? (Do not round intermediate calculations and round your final answer to 4 decimal places.)
Problem 19-18 Interest Rate Parity (LG19-5) The spot rate between the U.S. dollar and the Taiwan dollar is $1 = TWD30.005. Assume the interest rate in the United States is 3 percent and in Taiwan is 2 percent. What should be the 3-month forward exchange rate? (Do not round intermediate calculations and round your final answer to 4 decimal places.)
Problem 21-4 Continuation of purchasing power theory [LO21-2] From the base price level of 100 in 1981, Saudi Arabian and U.S. price levels in 2010 stood at 340 and 100, respectively. Assume the 1981 $/riyal exchange rate was $0.82/riyal. Suggestion: Using the purchasing power parity, adjust the exchange rate to compensate for inflation. That is, determine the relative
rate of inflation between the United States and Saudi Arabia and multiply this times $/riyal of 0.82.

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