Use the information in Table 18.2 to answer the ollowing questions: a. What is the six-month...

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Use the information in Table 18.2 to answer the ollowing questions: a. What is the six-month forward rate for the Japanese yen in yen per U.S. dollar? Is the yen selling at a premium or a discount? Explain. b. What is the three-month forward rate for the Australian dollar in U.S. dollars Australian dollar? Is the dollar selling at a premium or a per discount? Explain. t. What do you think will happen to the value of the dollar relative to the yen and the Australian dollar, based on the information in the figure? Explain. US$ vs. US$ vs. Currency per USD YTD % chg Currency Country/Currency USD equlv Country/Currency USD equlv per USD YTD % chg Americas Europe Czech Rep. koruna Argentina peso Brazil real .1173 8.5280 30.8 .04507 22.188 11.6 3897 2.5658 8.6 Denmark krone .1673 5.9757 10.1 Canada dollar 8759 1.1417 7.5 Euro area euro 1.2452 .8031 10.4 Chile peso Colombia peso Hungary forint Norway krone Poland zloty .001642 609.1000 15.8 .00406209 246.1800 13.9 .0004511 2217 14.9 .1422 7.0305 15.8 Ecuador US dollar 1 unch 2976 3.3598 11.1 Mexico peso 0718 13.9334 6.8 Romania leu 2808 3.5617 9.5 Peru new sol 3424 2.9210 4.2 Russia ruble 01989 50.274 52.7 .1342 1.0357 Uruguay peso .04247 23.545 11.1 Sweden krona 7.4518 15.8 Venezuela b. fuerte .15748031 6.3500 unch Switzerland franc .9655 8.1 1-mos forward 1.0362 .9651 7.5 Asla-Pacific 3-mos forward 1.0369 .9644 7.5 Australian dollar 8507 1.1755 4.8 6-mos forward Turkey lira UK pound 1-mos forward 1.0382 .9632 7.4 1-mos forward 8489 1.1780 4.6 .4505 2.2200 3.3 3-mos forward 8452 1.1831 4.6 1.5649 .6390 5.8 6-mos forward 8397 1.1909 4.7 1.5646 1.5639 .6391 5.5 China yuan Hong Kong dall India rupee Indonesia rupiah Japan yen 1628 6.1431 1.4 3-mos forward 6-mos forward .6394 5.5 .129 7.7546 unch 1.5626 .6400 5.5 .01606 62.25095 .6 .0000817 12246 .7 Middle East/Africa 00843 118.62 12.6 Bahrain dinar 2.6516 .3771 unch 00844 118.54 Egypt pound Israel shekel 1-mos forward 11.2 .1399 7.1471 2.8 3-mos forward .00844 118.49 11.2 .2567 3.8950 12.3 6-mos forward .00845 118.37 11.1 Jordan dinar 1.4187 .7049 -4 Malaysia ringgit 2951 3.3887 3.2 Kenya shilling 01109 90.149 4.3 New Zealand dollar .7843 1.2750 4.8 Kuwait dinar 3.429 .2916 3.3 .0006612 Pakistan rupee Philippines peso Singapore dollar South Korea won Lebanon pound Saudi Arabia riyal .00982 101.805 -3.4 1512.45 .5 .0223 44.905 1.2 2665 3.7529 .1 7667 1.3043 3.3 South Africa rand .0903 11.0695 5.5 0008983 1113.2 5.4 UAE dirham 2723 3.6731 unch Taiwan dollar .03226 30.999 3.6 .03045 .00005 Thailand baht 32.843 .4 Vietnam dong 21355 1.1 Use the information in Table 18.2 to answer the ollowing questions: a. What is the six-month forward rate for the Japanese yen in yen per U.S. dollar? Is the yen selling at a premium or a discount? Explain. b. What is the three-month forward rate for the Australian dollar in U.S. dollars Australian dollar? Is the dollar selling at a premium or a per discount? Explain. t. What do you think will happen to the value of the dollar relative to the yen and the Australian dollar, based on the information in the figure? Explain. US$ vs. US$ vs. Currency per USD YTD % chg Currency Country/Currency USD equlv Country/Currency USD equlv per USD YTD % chg Americas Europe Czech Rep. koruna Argentina peso Brazil real .1173 8.5280 30.8 .04507 22.188 11.6 3897 2.5658 8.6 Denmark krone .1673 5.9757 10.1 Canada dollar 8759 1.1417 7.5 Euro area euro 1.2452 .8031 10.4 Chile peso Colombia peso Hungary forint Norway krone Poland zloty .001642 609.1000 15.8 .00406209 246.1800 13.9 .0004511 2217 14.9 .1422 7.0305 15.8 Ecuador US dollar 1 unch 2976 3.3598 11.1 Mexico peso 0718 13.9334 6.8 Romania leu 2808 3.5617 9.5 Peru new sol 3424 2.9210 4.2 Russia ruble 01989 50.274 52.7 .1342 1.0357 Uruguay peso .04247 23.545 11.1 Sweden krona 7.4518 15.8 Venezuela b. fuerte .15748031 6.3500 unch Switzerland franc .9655 8.1 1-mos forward 1.0362 .9651 7.5 Asla-Pacific 3-mos forward 1.0369 .9644 7.5 Australian dollar 8507 1.1755 4.8 6-mos forward Turkey lira UK pound 1-mos forward 1.0382 .9632 7.4 1-mos forward 8489 1.1780 4.6 .4505 2.2200 3.3 3-mos forward 8452 1.1831 4.6 1.5649 .6390 5.8 6-mos forward 8397 1.1909 4.7 1.5646 1.5639 .6391 5.5 China yuan Hong Kong dall India rupee Indonesia rupiah Japan yen 1628 6.1431 1.4 3-mos forward 6-mos forward .6394 5.5 .129 7.7546 unch 1.5626 .6400 5.5 .01606 62.25095 .6 .0000817 12246 .7 Middle East/Africa 00843 118.62 12.6 Bahrain dinar 2.6516 .3771 unch 00844 118.54 Egypt pound Israel shekel 1-mos forward 11.2 .1399 7.1471 2.8 3-mos forward .00844 118.49 11.2 .2567 3.8950 12.3 6-mos forward .00845 118.37 11.1 Jordan dinar 1.4187 .7049 -4 Malaysia ringgit 2951 3.3887 3.2 Kenya shilling 01109 90.149 4.3 New Zealand dollar .7843 1.2750 4.8 Kuwait dinar 3.429 .2916 3.3 .0006612 Pakistan rupee Philippines peso Singapore dollar South Korea won Lebanon pound Saudi Arabia riyal .00982 101.805 -3.4 1512.45 .5 .0223 44.905 1.2 2665 3.7529 .1 7667 1.3043 3.3 South Africa rand .0903 11.0695 5.5 0008983 1113.2 5.4 UAE dirham 2723 3.6731 unch Taiwan dollar .03226 30.999 3.6 .03045 .00005 Thailand baht 32.843 .4 Vietnam dong 21355 1.1

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