FINANCE 620
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# The following rates are quoted for C\$ in terms of US dollar (\$) and Australian dollar (A\$) in New York: \$/C\$ = 0.9650 A\$/\$= 1.

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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