The following spot FX rates were reported on October 25, 2013. Japanese Yen British Pound Australian...
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The following spot FX rates were reported on October 25, 2013. Japanese Yen British Pound Australian Dollar U.S. dollar O.010267 1.616500 0.957900 Note: The exchange rates indicate the number of U.S. dollars necessary to purchase one unit of the foreign currency. a. From the perspective of a U.S. investor, are the preceding FX rates direct or indirect quotations? b. How much of each of the foreign currencies is needed to buy one U.S. dollar? 5. For the exchange rates in question 4, calculate the theoretical cross rates between: a. the Australian dollar and the Japanese yen, b. the Australian dollar and the British pound, and c. the Japanese yen and the British pound. The following spot FX rates were reported on October 25, 2013. Japanese Yen British Pound Australian Dollar U.S. dollar O.010267 1.616500 0.957900 Note: The exchange rates indicate the number of U.S. dollars necessary to purchase one unit of the foreign currency. a. From the perspective of a U.S. investor, are the preceding FX rates direct or indirect quotations? b. How much of each of the foreign currencies is needed to buy one U.S. dollar? 5. For the exchange rates in question 4, calculate the theoretical cross rates between: a. the Australian dollar and the Japanese yen, b. the Australian dollar and the British pound, and c. the Japanese yen and the British pound.
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Answer to Q 4a Let us first Understand about What is Direct Quotation Indirect Quotation Direct Quot... View the full answer
Related Book For
Understanding Business Statistics
ISBN: 978-1118145258
1st edition
Authors: Stacey Jones, Tim Bergquist, Ned Freed
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