A television costs $750 in the United States. The same television costs 637.5 euros. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar?

If British pounds sell for $1.53 (U.S.) per pound, what should dollars sell for in pounds per dollar?

Assume that interest rate parity holds. In the spot market 1 Japanese yen=$0 008055, while in the 90-day forward market 1 Japanese yen=$0.008065. In Japan, 90-day risk-free securities yield 2%. What is the yield on 90-day risk-free securities in the United States?

A currency trader observes that in the spot exchange market, $1$ U.S. dollar can be exchanged for $3.48$ Israeli shekels or for $101.80$ Japanese yen. What is the cross exchange rate between the yen and the shekel; that is, how many yen would you receive for every shekel exchanged?

Use the foreign exchange section of a current issue of The Wall Street Journal to look up the six currencies in problem 19-5.

a. What is the current exchange rate for changing dollars into 1,000 units of pounds, Canadian dollars, euros, yen, Mexican pesos, and Swedish kronas?

b. What is the percentage gain or loss between the August 25, 2017, exchange rate and the current exchange rate for each of the currencies in part a?

Suppose that 1 Danish krone could be purchased in the foreign exchange market today for $0.16. If the krone appreciated 4% tomorrow against the dollar, how many krones would a dollar buy tomorrow?

Six-month T-bills have a nominal rate of 2%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 1.25%. In the spot exchange market, 1 yen equals $0.0091. If interest rate parity holds, what is the 6-month forward exchange rate?

The global economy has expanded trade between the United States and many countries in recent years. Locate information about the dollar value of goods imported and exported in a recent year. Draw a bar graph depicting the dollar value of imports from the top six countries.

How did the religion of the ancient Israelites differ from those of its neighbors?

Suppose that 1 Danish krone could be purchased in the foreign exchange market today for $0.15. If the krone appreciated 4% tomorrow against the dollar, how many krones would a dollar buy tomorrow?

Austin Grocers recently reported the following 2016 income statement (in millions of dollars): $$ \begin{matrix} \text{Sales} & \text{\$ 700}\\ \text{Operating costs including depreciation} & \text{500}\\ \text{EBIT} & \text{\$ 200}\\ \text{Interest} & \text{40}\\ \text{EBT} & \text{\$ 160}\\ \text{Taxes (40\\%)} & \text{64}\\ \text{Net income} & \text{\$ 96}\\ \text{Dividends} & \text{\$ 32}\\ \text{Addition to retained earnings} & \text{\$ 64}\\ \end{matrix} $$ For the coming year, the company is forecasting a 25% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 70% of sales. Austin’s tax rate, interest expense, and dividend payout ratio are all expected to remain constant. a. What is Austin’s projected 2017 net income? b. What is the expected growth rate in Austin’s dividends?

As you are walking down the beach, you see a dead, dry, shriveled-up fish. Which layer of your epidermis keeps you from drying out? a. stratum corneum b. stratum basale c. stratum spinosum d. stratum granulosum

uncovered interest rate parity formula

Use given figure to answer the following questions: Suppose interest rate parity holds, and the current six-month risk-free rate in the United States is $1.3$ percent. What must the six-month risk-free rate be in Great Britain? In Japan? In Switzerland?