Jacob Gyntelberg Eli M Remolona +852 2878 7145 jacob.gyntelberg@bis.org +852 2878 7150 eli.remolona@bis.org Risk in carry trades: a look at target currencies in Asia and the Pacific 1 We analyse carry trades involving the Australian dollar‚ Indonesian rupiah‚ Indian rupee‚ New Zealand dollar and Philippine peso as target currencies. We find evidence supporting the view that downside risk is an important feature of such strategies and propose ways of measuring this risk. JEL classification: F310
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Solution for question 3 (chapter 4): 1. The legal framework: Sale contracts & excuses for nonperformance 2. Litigant : the distributor Defendant: the importer 3. Contractual analysis: An American importer purchased sewing machines from a Swiss manufacturer with the contract that payment was made in Swiss France‚ and then the importer sold them to distributors in USA. The contract between the importer and a distributor in U.S contained an “open-price term”. When the Swiss franc
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Homework Chapter 6 Problems 1‚ 10‚ 12‚ 13‚ 15‚ 16‚ 17 1.Visiting Guatemala spot rate on the GTQ/€ cross rate GTQ 10.5799/€ Spot rate on €/reais cross rate €0.4462/R$ a. What’s the Brazilian reais/GTQ cross rate? R/GTQ = GTQ/€ * €/R 10.5799*0.4462 = ANSWER: = 4.72075 b. How many quetzals will Isaac get for his reais? 4.72075*4‚500 = ANSWER: = 21‚243.38 GTQ 10.Swiss Franc SF 12‚000‚000 can you make a profit from triangular arbitrage? Mt fuji bank ¥ 92.00/$ Mt rushmore
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Name: Zakariya Jourane Date: 4/20/15 Graded Assignment Practice: You Do the Math Answer the following questions based on what you’ve learned about currency exchange rates. To find the amount of U.S. dollars that any given amount of currency will buy‚ simply multiply the currency by the exchange rate provided. (5 points) 1. Two college students went to Guadalajara‚ Mexico‚ on their spring breaks. One took the vacation in 2002‚ while the other went in 2006. Each student had $500 to spend. In 2002‚
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CHAPTER ONE [pic] 1. Introduction At independence in 1980 the Zimbabwe dollar replaced the Rhodesian dollar at par at a rate which was higher than the American dollar. Although this quickly deteriorated‚ it was not until the late nineties that a series of events led to the demise of the Zimbabwean dollar. In 2008 in an 18-month ‘experiment’‚ foreign currency was accepted as legal tender for transactions with a set number of retailers. “Honorable Members will be aware that in the hyper-inflationary
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GROUP ASSIGNMENT SEM 2 2013/2014 ACC4002: INTERNATIONAL BUSINESS AND GLOBALISATION Instruction: Students are required to form a group of 5 members. Each group need to select only ONE case. The case will be selected randomly. The list of the cases are as below: 1. Case 1: Globalization at General Electric on page 16. Question no.7 on page 36. 2. Case 2: IKEA The Global Retailer on page 37. Questions on page 37. 3. Case 3: Corruption in the Philippines on page 53. Question no.3 on page
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Chapter 10 Measuring Exposure to Exchange Rate Fluctuations Lecture Outline Is Exchange Rate Risk Relevant? Transaction Exposure Estimating “Net” Cash Flows in Each Currency Measuring the Potential Impact of the Currency Exposure Assessing Transaction Exposure Based on Value-at-Risk Economic Exposure Economic Exposure to Local Currency Appreciation Economic Exposure to Local Currency Depreciation Economic Exposure of Domestic Firms Measuring Economic Exposure Translation Exposure Does Translation
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5.3. A foreign exchange trader with a U.S. bank took a short position of £5‚000‚000 when the $/£ exchange rate was 1.55. Subsequently‚ the exchange rate has changed to 1.61. Is this movement in the exchange rate good from the point of view of the position taken by the trader? By how much has the bank’s liability changed because of the change in the exchange rate? |R1- | | | | | |
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Business Report Executive Summary Sorry Haven’t done it‚ will do it in the holidays Inventory and/or Quality management Strategies The Business Needs to Focus on to Improve its quality and operations management. Quality Management Quality management is the strategy which a business uses to make sure that its product meets customer expectations. Three quality approaches are quality control‚ quality assurance and total quality management. Quality control is a process which a business pursues
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Chapter 4 Exchange Rate Determination 1. The value of the Australian dollar (A$) today is $0.73. Yesterday‚ the value of the Australian dollar was $0.69. The Australian dollar _______ by _______%. A) depreciated; 5.80 B) depreciated; 4.00 C) appreciated; 5.80 D) appreciated; 4.00 ANSWER: C SOLUTION: ($0.73 – $0.69)/$0.69 = 5.80% 2. If a currency’s spot rate market is _______‚ its exchange rate is likely to be _______ to a single large purchase or sale
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