FIN 4180 International Financial Management
Assignment 5 answers
Assume the following:
The current exchange rate for Mexican pesos is 14.8121.
The 90-day US dollar interest rate is 0.72%.
The 90-day Mexican peso interest rate is 3.51%.
c and d
c and d
MGMT 4180 International Finance
Problem set 3 Arbitrage
Due: January 31, 2015
The following are quotes for several US currency dealers.
FIN 4180 International Finance
Assignment 2 Forward rates and cross rates
Due: January 22, 2015
Do this assignment individually.
Use these quotes from a dealer in the NY currency market to answer the following questions.
Remember: In New York,
Spec US supplied parts
Other labor and materials
Spec US fees
buy US$ from C at
If you are in AR then you will start by borrowing. If it is AP you will start by lending
CSCO has 5 billion in Euro it hplans to bring back to the US in 6 months. The current exchange rate is $1.1385 per Euro. The interest ra
Sample problems for exam 2
The questions are listed base on the chapter which they come from. I will provide the answer later.
6.5. Suppose you observe a spot exchange rate of $1.50/. If interest rates are 3% APR in the U.S. and 5% APR in
FIN4180 HW#4, suggested solution
1. Cray Research sold a super computer to the Max Planck Institute in Germany on credit and
invoiced 10 million payable in six months. Currently, the six-month forward exchange rate is
$1.10/ and the foreign excha
Homework #3 suggested solution
1. Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months. The sixmonth interest rate is 8 percent per annum in the United States and 7 percent per an
October 10, 2015
1: Strong dollar value with our principle trading partners like China
where it is undervalued.
2: Weak competition of US industries.
3: High consumption and low savings from the US consumer
If we dont change #3 and s