1) Bid and Ask quotes for the Canadian Dollar (CAD) and Australian Dollar (AUD) are given below:
USD 0.7487- 0.7525/CAD
USD 0.7105 - 0.7195/ AUD
Calculate the bid and ask cross rates for the CAD priced in AUD terms:
S (AUD/bid CAD) and S (AUD/ask CAD).
2) The MXN went from MXN 22.5540 per USD to MXN 19.2123 per USD in a month.
a) What was the appreciation (or depreciation) of the MXN relative to the USD over the month? (Hint: calculate the % change in the USD-value of the MXN over the month)
b) What was the appreciation (or depreciation) of the USD relative to the MXN
over the month? (Hint: calculate the % change in the MXN-value of the USD
over the month).
3) Suppose the current exchange for the EUR is USD 1.1227 per EUR. You forecast the USD is going to appreciate by 10% relative to the EUR in one month. What will be the USD/EUR exchange rate in a month if your forecast is correct?