Problem 5.07 – Asian Pacific Crisis
Multinational Business Finance
Eiteman, Stonehill, and Moffett
15th Edition
Complete a large grid to show the change relative to the dollar and then determine which country was most impact and least impacted.
Complete a large grid to show the change relative to the dollar and then determine which country was most impact and least impacted.
Use the table provided to calculate the exchanged rates for problems a,b,c,d,e,f… to n.
Given Bid Rates and Ask Rates, you are asked to determine the Mid Rates and Forward premiums.
Calculate the arbitrage opportunity, two attempts.
Determine the mid-rates and forward premiums for the US. dollar/Australian dollar exchange rates by filling out a large grid of numbers.
Determine the arbitrage opportunity by looking at quotes from Citibank and Barclays.
Determine what happened to the Venezuelan bolivar and calculate its percentage change once it was floated.
Compute the percentage change in January of the Venezuelan bolivar, then forecast the exchange rate for June.
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.
Determine the forward premium or discount on the dollar and the pound using a 360-day year.