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just wanna check if im doing it right International Finance - Quiz...

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Accounting

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International Finance - Quiz 2 Practice Questions - Fall 2019 1. The table below has current interbank interest rates (average of the bid ask rates) for the GBP. the EUR and the JPY (as annualized percentages). Maturity GBP EUR JPY 6 Months 1.75% 50% 00% 18 Months 2.50% 2.0% 25% Large banks can borrow/lend at these rates. Work out the implied 6-month and 18-month forward exchange rates, for the EUR-GBP (ie. GBPs per EUR), EUR-JPY (.e. JPYs per EUR) and JPY- GBP (ie. GBPs per JPY) currency pairs. The core spot exchange rates are S(GBP/EUR)-.8000GBP per EUR and S(JPY/EUR)-125JPY per EUR. You must work out the S(GBP/JPY) cross rate. CBP/JPY: COP Hint: See CIP in Chapter 6 and Chapter 3 for cross-rate calc. EUR Enter the forward exchange rates in the table below. F(GBP/EUR) FUJPY/EUR) F(GBP/JPY) GBPS per EUR JPYs per EUR GBPs per JPY 6 Months 0.8049 12119 18 Months Six vanta F CalP/EUR) - CI+ (UDP)? (Eti(EUR) . .? H+ 1.75% (H2.5% 2.8 0.8044 1434) 125 = 24. 69

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