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Question

 1) Bid and Ask quotes for the Canadian Dollar (CAD) and Australian Dollar (AUD) are given below:

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         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?

Top Answer

AUD / CAD Bid cross rate = 1.0406 AUD / CAD Ask cross rate =... View the full answer

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