Question: Please answer both asap Given the following information, what is the (approximate) rate of change in the exchange rate (e) between (GBP) and (JPY) according

Given the following information, what is the (approximate) rate of change in the exchange rate (e) between (GBP) and (JPY) according to the Purchasing Power Parity? JPY appreciates by 3.0196\%. No change since the real interest rates are same. JPY appreciates by 3.08%. GBP appreciates by 3.0196%. GBP depreciates by 3.08%. You have the following three quotes from three different banks. If you have USD1,000, how much can you make from this arbitrage opportunity? MXN= Mexican Peso; INR = Indian Rupee. - Bank X: MXN 17.50/USD. - Bank Y: INR 85.50/USD. - Bank Z: MXN 0.18/INR $180. $137.10. $85.50. $15.39. $97.22. $17.50. $175.00 Given the following information, what is the (approximate) rate of change in the exchange rate (e) between (GBP) and (JPY) according to the Purchasing Power Parity? JPY appreciates by 3.0196\%. No change since the real interest rates are same. JPY appreciates by 3.08%. GBP appreciates by 3.0196%. GBP depreciates by 3.08%. You have the following three quotes from three different banks. If you have USD1,000, how much can you make from this arbitrage opportunity? MXN= Mexican Peso; INR = Indian Rupee. - Bank X: MXN 17.50/USD. - Bank Y: INR 85.50/USD. - Bank Z: MXN 0.18/INR $180. $137.10. $85.50. $15.39. $97.22. $17.50. $175.00
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
