Question: PLEASE HELP X=7 1. Pound/dollar currency pair's value changed from 1x.18/S to 15.x3/S. a. Is this an appreciation or depreciation for dollar? Why? b. By

PLEASE HELP

X=7

1. Pound/dollar currency pair's value changed from 1x.18/S to 15.x3/S. a. Is this an appreciation or depreciation for dollar? Why? b. By what percentage did currency pair's value change? (15 pts) 2. Orhan Yasar speculates on the currencies in the foreign currency exchange market. Currently the spot price for the Polish zloty is Z1439.x7/$ and the 4-month forward rate is Z1441.x4/S. Orhan expects the Polish zloty will move to Z1441.5x/S in the next four months. a. What should Orhan do? If Orhan has $x00000, explain how much he can earn as profit in dollars? Show calculations. b. Specify the transaction such as buy/sell at forward/spot/expected future spot rate. Compare the risk level of possible transactions. (25 pts)

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