The prices of an iPad (8th generation) 32GB in some countries are assumed to be as follows: • 329.99 USD in the US • 3499 RMB in China 429 CAD in Canada • £319.97 in the UK 34,800 yen in Japan The current exchange rates are assumed to be as follows: EUSDIRMB = 0.16 EUSDICAD=0.82 EUSDIE = 1.41 EUSDlyen = 0.009 Show that each of the four non-US currencies (RMB,CAD, Pound,Yen) is over/under-valued based on Index. Write down your calculations.
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- Consider this (incomplete) table of FX cross-rates USD EUR JPY GBP CHF CHF Column JPY What number should be at the intersection of: Row USD EUR JPY GBP CHF 1.2500 Example: the number at the intersection of Row "JPY" and Column "USD" is "110.00" and represents the number of JPY needed to buy one USD. CHF Column JPY 0.0043 0.8727 0.0073 110.00 What number should be at the intersection of: Row 0.104 2.4000 ? 0.0104 96.00Please use the data below, to answer the following question. BigMac price in the US BigMac price in Mexico Current Exchange Rate O overvalued by 14.29% O undervalued by 14.29% O overvalued by 12.50% O undervalued by 12.50% USD 3.50 12 MXN 80 Based on PPP, the MXN is 1 USD - MXN 20 140 15 16 (2 hpA computer cost $1,300 in the United States. The same computer costs € 1,100 euros in Europe. Assuming that the purchasing power parity( PPP) strictly holds, what is the spot exchange rate between dollar and the euro?
- Given the following data: R = $1.00¥115 %D F = $1.00¥140 ius. = 8% U.S. If the interest parity condition is expected to hold, interest rates in Japan (i lapan) should equal % (enter your answer as a percentage rounded to two decimal places). Given the following data: E, = ¥110 = $1.00 E41 = ¥140 = $1.00 {one year later} %3D İJapan = 5% annually İu.s. = 6% annually Calculate the future value of a $1,000 investment. If the $1000 is invested in the U.S., the future value is $ (Round your response to two decimal places.)Purchasing Power Parity A computer costs $430 in the United States. The same model costs €525 in France. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar? Do not round intermediate calculations. Round your answer to two decimal places.The exchange rates in New York for $1 are Can$1.0941 or 0.7257 pounds. In Toronto, Can$1 will buy 0.6722 pounds. How much profit can you earn on $8,500 using triangle arbitrage?" $107.90 $114.25 $120.26 $105.46 $142.81
- Consider this (incomplete) table of FX cross-rates CHF Column EUR 1.0043 1.4167 USD USD EUR JPY 110.00 GBP CHF 1.4323 What number should be at the intersection of: Row 0.692 EUR JPY 1.2500 Example: the number at the intersection of Row "JPY" and Column "USD" is "110.00" and represents the number of JPY needed to buy one USD. GBP 2.4000 CHF 96.00Assume the following exchange rates: Currencies Exchange Rate MXN/USD 0.0470 MXN/JPY 5.2300 JPY/USD 0.0088 Is triangular arbitrage possible? If so, how much is your profit in USD if you start with $1,000,000?14. The US price of a base model iPhone 11 is USD700. The Singapore price for the same phone is SGD1,150. The exchange rate is 1.36SGD to 1USD. Which of the following is correct? 1. Based on iPhone prices, the USD is undervalued when compared to the SGD. 2. Based on iPhone prices, the PPP exchange rate is 1.64SGD to 1USD. 3. There is an incentive to purchase iPhone 11's in Singapore to sell in the US. O. 1 and 3 only. O. 1, 2 and 3. O. 2 only. O. 3 only. O. 1 and 2 only.
- See the ECONOMICS Table below: New York London Zurich Big Mac price $5.65 £3.49 CHF 6.89 Exchange rate of $1 $1 £0.73 CHF 0.92 Exchange rate of CHF1 $1.09 £0.79 CHF1 Using the above values determine whether the Purchasing Power Parity is valid and if not identify if the £ and the Swiss Franc (CHF) are overvalued or undervalued against the $ and whether the £ is undervalued / overvalued against the CHFSuppose the Japanese yen exchange rate is ¥116 = $1 and the British pound exchange rate is £1 = $1.27. a. What is the cross-rate in terms of yen per pound? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. Suppose the cross-rate is ¥156 = £1. What is the arbitrage profit per dollar? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616. a. Cross-rate b. Arbitrage profit per dollar /£Suppose the Japanese yen exchange rate is ¥116 = $1 and the British pound exchange rate is £1 = $1.27. a. What is the cross-rate in terms of yen per pound? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. Suppose the cross-rate is ¥156 = £1. What is the arbitrage profit per dollar? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616. a. Cross-rate b. Arbitrage profit per dollar ¥ 147.32 /£ 0.0600