Suppose the current exchange rate for the Polish zloty is Z3.38. The expected exchange rate in 5 years. The expected exchange rate in 5 years is Z3.65. What is the difference in the annual inflation rates for the United States and Poland over this period? Assume that the anticipated rate is constant for both countries.

Suppose your company imports computer motherboards from Singapore. The exchange rate is $1.3806 per Singapore dollar. You have just placed an order for 37,256 motherboards at a cost to you of S146 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $113 each. Calculate your profit if the exchange rates goes up by 13.02% over the next 90 days.

Answer rating: 100% (QA)

Okay lets break this down stepbystep 1 Calculating the difference in annual inflation rates between ... View the full answer