If you have 4.80 million euro. How
many dollars do you have?
Which is worth more, a New Zealand
Which is worth more, a Mexican peso
How many Swiss francs can you get
for a euro? What do you call this rate?
Problem 31-3 Forward Exchange Rates
Use the information in the table below to answer the following questions:
in U.S. $
Problem 31-4 Using Spot and Forward Exchange Rates
Suppose the spot rate exchange rate for the Canadian dollar is Can$1.06 and the
six-month forward rate is Can$1.03.
Assuming absolute PPP holds, what is the cost in the U.S of an Elkhead
beer if the price in Canada is Can$2.74? the cost in U.S. dollar is:
Is the U.S. dollar selling at premium or a discount relative to the Canadian
Problem 31-6 Interest Rate Parity
Use the information below to answer the following questions.