At current exchange rates it takes 0.1475 Canadian dollars to buy Chinese yuan (CNY), and 0.6052...
At current exchange rates it takes 0.1475 Canadian dollars to buy Chinese yuan (CNY), and 0.6052 Canadian dollars to buy one Brazilian real (BRL). What must the yuan/real exchange rate be in order to eliminate arbitrage opportunities?
Homework Answers
1 CNY = 0.1475 Canadian dollars, it is expressed as : CAD/CNY = 0.1475
1 BRL = 0.6052 Canadian dollars, it is expressed as : CAD/BRL = 0.6052
yuan/real exchange rate = CNY/BRL = (CNY/CAD)/(BRL/CAD) = 1/(CAD/CNY) X (CAD/BRL)
yuan/real exchange rate = 1/0.1475 X 0.6052 = 4.1031 CNY/ BRL
ANSWER : 4.1031 CNY/ BRL (Thumbs up please)
Add Answer to:
At current exchange rates it takes 0.1475 Canadian
dollars to buy Chinese yuan (CNY), and 0.6052...
Compute the Cross rates Chinese Yuan ( CNY ) = .1586 USD CNY= 12.331 ( JPY)...
Compute the Cross rates Chinese Yuan ( CNY ) = .1586 USD CNY= 12.331 ( JPY) What is the Cross Rate between USD and JPY and JPY and USD JPY/USD = ------------- USD/JPY= ---------------
There is a buy rate (probably for question a.) sell rate (for b.) and exchange rate. 8. A bank of Calgary has the following buy and sell rates against Canadian dollars: Country Buy Rate Sell Rate Cur...
There is a buy rate (probably for question a.) sell rate (for b.)
and exchange rate.
8. A bank of Calgary has the following buy and sell rates against Canadian dollars: Country Buy Rate Sell Rate Currency name Brazil 0.3615 reals 0.4290 a. Calculate the cost of purchasing 500 Brazilian reals based on the exchange rate R$1-C$0.3927. b. Calculate the bank's commission amount in CAD and their rate of commission (%) to sell 500 Brazilian reals.
8. A bank of...
A forex dealer in Bangkok is buying US dollars (USD) in exchange for Thai Baht (THB)...
A forex dealer in Bangkok is buying US dollars (USD) in exchange for Thai Baht (THB) at a rate of USD 1 = THB 25.0 and selling Chinese yuan (CNY) at a rate of CNY 1 = THB 3.0 . A Bank of China branch next door is selling USD for CNY at a rate of USD 1 = CNY 8.2. A speculator plans to earn an arbitrage profit by first going to the dealer, where she will exchange USD...
The table lists foreign exchange rates for May 29, 2015. On that day, how many dollars...
The table lists foreign exchange rates for May 29, 2015. On that day, how many dollars would be required to purchase 1,500 units of each of the following: British pounds, Canadian dollars, EMU euros, Japanese yen, Mexican pesos, and Swedish kronas? Round your answers to the nearest cent. Sample Exchange Rates: Friday, May 29, 2015 Direct Quotation: U.S. Dollars Required to Buy One Unit of Foreign Currency (1) Indirect Quotation: Number of Units of Foreign Currency per U.S. Dollar (2)...
Suppose that a US-based company is buying Chinese goods. Current exchange rate for Chinese Yuan is...
Suppose that a US-based company is buying Chinese goods. Current exchange rate for Chinese Yuan is 0.15 USD. The price of goods is $13,000 per unit. The company is buying 800 units per year with a fixed contract for the next two years. Suppose that Chinese Yuan appreciate to 0.2 USD in the next year. The US importer will respond to this by lowering the demand to 600 units in the third year. What cash flow will be reflected on...
Daisy Farm, a NSW based dairy company exports fresh milk to China. Chinese Yuan (CNY) has...
Daisy Farm, a NSW based dairy company exports fresh milk to China. Chinese Yuan (CNY) has been trading at AUD/CNY5.00. Exports to China are currently 100,000 litres per year at the equivalent price of $0.50 per litre. There is a strong rumour that the CNY will be devalued to AUD/CNY$5.60 in the next month. Should the devaluation actually take place, the CNY is expected to remain unchanged for another 10 years. Accepting the rumour/forecast as given, the company faces a...
The table lists foreign exchange rates for August 25, 2017. On that day, how many dollars...
The table lists foreign exchange rates for August 25, 2017. On that day, how many dollars would be required to purchase 1,100 units of each of the following: British pounds, Canadian dollars, EMU euros, Japanese yen, Mexican pesos, and Swedish kronas? Use the direct quotation for your calculations. Round your answers to the nearest cent. Sample Exchange Rates: Friday, August 25, 2017 Direct Quotation: U.S. Dollars Required to Buy One Unit of Foreign Currency (1) Indirect Quotation: Number of Units...
1. Why do you think that the Chinese historically pegged the value of the yuan to...
1. Why do you think that the Chinese historically pegged the value of the yuan to the U.S. dollar? 2. Why did the Chinese move to a managed-float system in 2005? 3. What are the benefits that China might gain by allowing the yuan to float freely against other major currencies such as the U.S. dollar and the euro? What are the risks? What do you think they should do? 4. Is there any evidence that the Chinese kept the...
Three Exchange Rates are as follows: 1) US Dollars (USD) to Canadian Dollars (CAD) at CAD...
Three Exchange Rates are as follows: 1) US Dollars (USD) to Canadian Dollars (CAD) at CAD 1.05 to USD 1 2) CAD to Euros (EUR) at CAD 1.08 to EUR 1 3) EUR to USD at EUR 0.9 to USD 1 Suppose you start with USD 100,000, and do one round of "triangular arbitrage", that is convert make a total of 3 foreign exchange transactions to start from USD and return to USD. What will be your profit in USD?...
1. Exchange Rate: Suppose the direct foreign exchange rates in U.S. dollars are: 1 British pound...
1. Exchange Rate: Suppose the direct foreign exchange rates in U.S. dollars are: 1 British pound = $1.60 1 Canadian dollar = $0.74 Required: a. What are the indirect exchange rates for the British pound and the Canadian dollar? b. How many pound must a British company pay to buy goods costing $8,000 from the U.S. company? c. How many U.S. dollars must be paid for a purchase costing 4,000 Canadian dollars? 2. Changes in Exchange Rates: Upon arrival at...
There is a buy rate (probably for question a.) sell rate (for b.)
and exchange rate.
8. A bank of Calgary has the following buy and sell rates against Canadian dollars: Country Buy Rate Sell Rate Currency name Brazil 0.3615 reals 0.4290 a. Calculate the cost of purchasing 500 Brazilian reals based on the exchange rate R$1-C$0.3927. b. Calculate the bank's commission amount in CAD and their rate of commission (%) to sell 500 Brazilian reals.
8. A bank of...
Suppose that a US-based company is buying Chinese goods. Current exchange rate for Chinese Yuan is 0.15 USD. The price of goods is $13,000 per unit. The company is buying 800 units per year with a fixed contract for the next two years. Suppose that Chinese Yuan appreciate to 0.2 USD in the next year. The US importer will respond to this by lowering the demand to 600 units in the third year. What cash flow will be reflected on...
Most questions answered within 3 hours.
-
A
31.52g piece of copper at 92 degrees celsius was placed in a sample
of water...
asked 36 minutes ago -
At the current market equilibrium, the price of a good is $40.00
and the quantity is...
asked 35 minutes ago -
Hypothesize: How would a hydrophilic drug be loaded into a
hydrophobic artificial liposome, and how would...
asked 45 minutes ago -
in a dictionary whose keys are the warehouses: associated with
each warehouse is an inner dictionary...
asked 2 hours ago -
A car traveling 70 km/h slows down at a constant 0.47 m/s2 just
by "letting up...
asked 2 hours ago -
What is relationship marketing?
How is a marketing-oriented firm different from a
production-oriented firm or a...
asked 2 hours ago -
how can I create a flyer in Word to sell a personal
item
asked 4 hours ago -
A rough plane makes an angle of 30.0° above the
horizontal and is 4.00 m long...
asked 4 hours ago -
The titration of silver ions with chloride ions is an often used
precipitation reaction to gauge...
asked 6 hours ago -
You are conducting a study to see if the proportion of men over
50 who regularly...
asked 7 hours ago -
Gundy Company expects to produce 1,200,000 units of Product XX in
2017. Monthly production is expected...
asked 7 hours ago -
In this class, you will need to install the Amazon WorkSpace
(AWS), a cloud based virtual...
asked 7 hours ago