Question: Cross Rate and PPP (Please explain in depth while using the simplest methods) Cross Rate Q1) Calculate how much $1000 will be in MYR, given

Cross Rate and PPP (Please explain in depth while using the simplest methods)

Cross Rate

Q1) Calculate how much $1000 will be in MYR, given the following rates. The exchange rate quotes for the Singapore dollar are currently $0.75, while quotes for the Singapore dollar are MYR3.30.

PPP

Q2) You have a receivable of NZ$10,000 in one year. A one-year put option offered for $0.01 per unit on New Zealand dollar at a strike price of $0.62. Current spot rate is a New Zealand dollar for $0.63. New Zealand US Inflation rate 5% 7% If PPP holds, will you enter into this option?

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