PLEASE SHOW ALL WORKING AND FORMULAS ON EXCEL SO THAT I CAN STUDY THE FORMULAS

17-5.Suppose that the exchange rate is 0.60 dollars per Swiss franc. If the franc appreciates 10%

against the dollar, how many francs would a dollar buy tomorrow?

17-6.Suppose the exchange rate between U.S. dollars and the Swiss franc is SFr1.6 = $1 and the

exchange rate between the dollar and the British pound is 1 = $1.50. What then is the

cross rate between francs and pounds?

17-7.Assume that interest rate parity holds. In both the spot market and the 90-day forward

market, 1 Japanese yen equals 0.0086 dollar. In Japan, 90-day risk-free securities yield

4.6%. What is the yield on 90-day risk-free securities in the United States?

17-8.In the spot market, 7.8 pesos can be exchanged for 1 U.S. dollar. A pair of headphones

costs $15 in the United States. If purchasing power parity holds, what should be the price

of the same headphones in Mexico?

17-11.Boisjoly Watch Imports has agreed to purchase 15,000 Swiss watches for 1 million

francs at todays spot rate. The firms financial manager, James Desreumaux, has noted

the following current spot and forward rates:

U.S. Dollar/Swiss Franc Swiss Franc/U.S. Dollar

Spot 1.6590 0.6028

30-day forward 1.6540 0.6046

90-day forward 1.6460 0.6075

180-day forward 1.6400 0.6098

18-1. Define each of the following terms:

a. Going public; new issue market; initial public offering (IPO)

b. Public offering; private placement

c. Venture capitalists; roadshow; spread

d. Securities and Exchange Commission (SEC); registration statement; shelf

registration; margin requirement; insiders

e. Prospectus; red herring prospectus

f. National Association of Securities Dealers (NASD)

g. Best efforts arrangement; underwritten arrangement

h. Refunding; project financing; securitization; maturity matching