Problem 5.13 – Venezuelan Bolivar​ (A)

Multinational Business Finance

Eiteman, Stonehill, and Moffett

15th Edition and 16th Edition

Determine what happened to the Venezuelan bolivar and calculate its percentage change once it was floated.

Problem 5.14 – Venezuelan Bolivar​ (B)

Multinational Business Finance

Eiteman, Stonehill, and Moffett

15th Edition and 16th Edition

Compute the percentage change in January of the Venezuelan bolivar, then forecast the exchange rate for June.

Problem 5.15 – Indirect Forward Premium on the Dollar and Euro

Multinational Business Finance

Eiteman, Stonehill, and Moffett

15th Edition and 16th Edition

Determine the forward premium on the dollar and then using drop downs, determine which currency has a premium and which one has a discount in the forward market.