Question: question number 2 please Due on April 6th, 2020 in class. 1. Assume you have the following information: USD/MXN -18.51/18.52 and USD/NZD -1.2965/1.2969. Calculate NZD/MXP.
Due on April 6th, 2020 in class. 1. Assume you have the following information: USD/MXN -18.51/18.52 and USD/NZD -1.2965/1.2969. Calculate NZD/MXP. (0.5 point) USD/MXN = 18.51/18.52 USD/NZD = 1.2965/1.2969 than: NZD/MXN -(USD/MXN)/(USD/NZD) - 14.272/14.285 2. Assume you have the following information: EUR/USD =1.2315/1.2318 EUR/CHF =1.1231/1.1233 USD/CHF 0.9123/0.0.9124 If you have $1 million, what is your strategy to earn profits? (1.0 point) 3. Beth Miller does not believe that the international Fisher effect (IFE) holds. Curre rates in Europe are 5 percent, while one-year interest rates in the U.S. are 3 percent. $100,000 to euros and invests them in Germany. One year later, she converts the eur The current spot rate of the euro is $1.10. (1.0 point) a. According to the IFE, what should the spot rate of the euro in one year be? b. If the spot rate of the euro in one year is $1.00, what is Beth's percentage retur c. If the spot rate of the euro in one year is $1.08, what is Beth's percentage retu strategy? d. What must the spot rate of the euro be in one year for Beth's strategy to be su
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