Forward Premium. Compute the forward discount or premium for
the Mexican peso whose 90-day forward rate is $.102 and spot
rate is $.10. State whether your answer is a discount or
premium.
ANSWER: (F -
Indirect Exchange Rate. If the direct exchange rate of the euro is $1.25, what is
the euros indirect exchange rate? That is, what is the value of a dollar in euros?
ANSWER: 1/1.25 = .8 euros.
Cross Ex
Measuring Forecast Accuracy. You are hired as a consultant to assess a
firms ability to forecast. The firm has developed a point forecast for two
different currencies presented in the following table.
Ch 11 problems
2. The company could potentially borrow the same amount, so that the 100,000 Singapore dollars to be
received could be used to pay off the loan. This amounts to (100,000/1.02) = about S
International Finance
Ch 10 questions
2. The krone and pound values move in tandem against the dollar. Both the krone and the pound
exposure show positive net inflows. Thus, their exposure should be m
International Finance
Ch. 5 homework
4. (F - S) / S = ($.102 - $.10) / $.10 = 0.02, which reflects a 2% premium over 90 days.
Annualized, would be 0.02 (360/90) = .08, or 8%, which reflects an 8% annu
Problem Set 8
7.12
a. There is somewhat positive and possibly linear relationship, but there are some observation in
the right corner with high height which have small volume.
b. There is positive and
Problem set 7
5.26
No, it isnt. First of all, the sample sizes are large. It contains all of the
best actor and best actress winners from 1929 to 2012, so it isnt 10% of
all population. Also, the samp
Problem Set 6
5.5
95% confidence interval: (18.985, 21.015) = mean t*SE mean = 20
t(35) = 2.03 SE = 0.5
SE = s/n s = 0.5*6 = 3
5.8
a. Yes, the sample is random and less than 10% of users. The sample i
Problem Set 5
4.8
99% confidence interval: 52%2.33*2.4%=(46.408%, 57.592%)
We are 99% confident that the fraction of U.S. adult Twitter users who get some news on Twitter
is between 46.408% and 57.592
Problem Set 4
3.2
a. 87.08%
b. 57.14%
c. 0.02%
d. 38.3%
3.4
b. Leo: Z=(4948-4313)/583=1.09=86.21%
Mary: Z=(5513-5261)/807=0.31=62.17%
Leo is 1.09 standard deviations above the mean on the finishing ti
Problem Set 3
1.47
a. Dist 1 has a lower mean than Dist 2 because 13 in Dist 1 <20 in Dist 2. Also, Dist 1 has a
lower standard deviation since 13 is closer from the rest of the data.
b. Dist 1 has hi
Problem set 2
1.2
a. 77.65% of patients in the treatment group experienced a significant improvement in
symptoms.
80.25% of patients in the control group.
b. The symptomatic treatment appears to be mo