Determine the exchange rate between the peso and $ if PPP held, the percentage undervaluation of the Argentinian peso, and the causes for the rapid decline in the peso’s value.
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Determine the difference in rates and forecasted exchange rate between the yen and the dollar.
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What is the dollar price of a Toyota Corolla from Osaka, Japan in the following situations: a) at the beginning of the year, b) assuming purchasing power parity holds at the end of the year, c) with 100% exchange rate pass-through at the end of the year, and d) with 75% exchange rate pass-through at the end of the year?
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Determine the percentage over or undervaluation of the kuna.
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Determine the CIA (or UIA) profit potential, and conduct an interest arbitrage. Works on ALL arbitrage problems through 6.15.
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Given spot exchange rates, the Treasury bill rate, and the inflation rate, calculate the expected inflation in Europe and the forward exchange rate between the dollar and the euro.
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