## Financial Management Quiz

Get a Custom Essay Paper that meets your expectations by clicking ORDER

### Financial Management Quiz

1.  The exchange rate is 0.967 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 1 Swiss franc?
2. The exchange rate is 1.1491 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 9,899 Swiss francs?
3. Suppose one U.S. dollar can purchase 135 yen today. If the yen depreciates by 10% tomorrow, how many yen could one U.S. dollar buy tomorrow?
4. Suppose the exchange rate between U.S. dollars and Swiss francs is SF 0.9645 = \$1.00, and the exchange rate between the U.S. dollar and the euro is \$1.00 = 1.1934 euros. What is the cross-rate of euros to Swiss francs (Euro/SF)?
5. Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.1716 = \$1.00, and the exchange rate between the U.S. dollar and the euro is \$1.00 = 1.149 euros. What is the cross-rate of Swiss francs to euros (SF/Euro)?
6. You can exchange \$1 for either C\$1.209 or ¥114.09. What is the cross rate between the Japanese yen and the Canadian dollar? That is, solve for ¥ per C\$.
7. In New York, you can exchange \$1 for €0.8026 or £0.6149. Suppose that, in Berlin, £1 costs €1.1814. How much profit can you earn on \$40,116 using triangle arbitrage?
8. Your friend from Germany has decided to come and visit you in the United States. You estimate the cost of her trip at \$6,752. What is the cost to her in euros if the U.S. dollar equivalent of the euro is 1.2031?
9. You just returned from a trip to Venezuela and have 6,696 bolivares fuertes in your pocket. How many dollars will you receive when you exchange this money if the U.S. dollar equivalent of the bolivares fuertes is 0.1507?

Financial Management Quiz

Get a Custom Essay Paper that meets your expectations by clicking ORDER

## Currency Exchange Rate

Get a Custom Essay Paper that meets your expectations by clicking ORDER

### Currency Exchange Rate

Order Instructions:

***ANSWER EACH QUESTION USING EXCEL WITH FORMULAS****

1. Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.41 = \$1.00, and the exchange rate between the U.S. dollar and the euro is \$1.00 = 1.64 euros. What is the cross-rate of Swiss francs to euros? What is the cross-rate of euros to Swiss francs?

2. In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or \$8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 yen per dollar, what would the car be selling for today in U.S. dollars.

3. Suppose the spot exchange rate for the Canadian dollar is C\$1.23 and the six-month forward rate is C\$1.27.What is worth more, a U.S. dollar or a Canadian dollar?

Get a Custom Essay Paper that meets your expectations by clicking ORDER