1. What is the spot rate for the British pound (GBP) on Wednesday, Feb 1st, 2017 in terms of the U.S. dollar (USD)? Or, from the U.S. perspective, what is the direct quote on pounds?)
2. What is the spot price for the USD on Wednesday Feb 1st, 2017 in terms of the Swiss franc (CHF)? (Or, from the U.S. perspective, what is the indirect rate on Swiss francs?)
3. Using your answers from #1 and #2 above, calculate the cross rate of exchange between the British pound (GBP) and the Swiss franc (CHF) (need to see your math).
4. Calculate the annualized forward premium or discount on six-month forward yen (need to see your math).
5. Based on your answer to #4 above, if you are planning to go to Japan in 6 months, should you buy your yen today? Why or why not?
6. According to the international Fisher Effect, if the real interest rate is 4%, if the US inflation rate is 5% and the Japanese inflation rate is 7%, then what is the nominal interest rate in the US? What is the nominal interest rate in Japan? Need to see math.
7. What is the expected difference between interest rates in the United States and Japan (do not need to see math, this can be answered in words and not numbers)?
8. From the viewpoint of a Canadian citizen, did the value of the Canadian dollar (CAD) rise or fall between Tuesday and Wednesday?