1. The following rates are quoted for C$ in terms of US dollar ($) and Australian dollar (A$) in New York:

$/C$ = 0.9650 A$/$= 1.0250

(a) What are the (implied) quote for $ in terms of C$ and for A$ in terms of $ in the above rates?

(b) What is the cross rate for C$ in terms of A$ (A$/C$) implied in the above rates?

2. Suppose Dow Chemical receives quotes of $0.009369-71 for the yen and $0.03675-6 for the Taiwan dollar (NT$).

a. How many US$ will Dow Chemical receive from the sale of ¥50 million?

b. What is the US$ cost to Dow Chemical of buying ¥1 billion?

c. How many NT$ will Dow Chemical receive for US$500,000?

3. You see the following three month swap quote for C$: $0.9650-60 20-25. Using this information, determine the three month outright forward rate for C$.

4. The Japanese yen (¥) changed its price in terms of dollars from $0.0905 to $0.0915 in 30 days.

(a) What is the percentage change in the price of ¥?

(b) What is the implied percentage change in the price of US$?

(c) State these changes in annualized percentage.

### Recently Asked Questions

- What is the probability that 36 randomly chosen students will spend an average of more than $108 on grocery in a week?

- Question 5 Ben Cartwright Pest Control has the following balance in the selected account on December 31 , 2017. Accounts

- Review the New York Times article on additional disclosures from auditors. Do you agree or disagree with mandatory additional disclosures by