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.
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