--%>
Assignment Help - homework help

Computing cross-rate matrix

Compute cross-rate matrix for French franc, Japanese yen, German mark, and the British pound. Utilize most recent European term quotes in order to compute the cross-rates in order that the triangular matrix result is same as that of the portion above diagonal in Exhibit 4.6.

E

Expert

Verified

Cross-rate formula which is used is:

S(k/j) = S(k/$)/S(j/$).

Triangular matrix will consists of the 4 x (4 + 1)/2 = 10 elements.

                  Dollar    Pound      Yen      D-Mark

France         6.4071   10.0488  .05250   3.3538

Germany     1.9104    2.9964   .01565

Japan          122.05   191.42

U.K             0.6376

   Related Questions in Financial Accounting

  • Q : What bid price per widget should you

    You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land

    		•
  • Q : Assurance services Significant costs

    Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added

    		•
  • Q : Claim depreciation When an asset is

    When an asset is purchased and the similar is not employed for the financial year, must the company charge the depreciation and the reason for the similar?

    		•
  • Q : REDUMPTION OF DEBENTURS WHAT IS

    WHAT IS REDUMPTION? AND WHAT ARE THE CONDITIONS?

    		•
  • Q : Calculation of weighted average cost of

    Calculation of weighted average cost of capital: Under this following steps are undertaken: 1. Record amount in respect of various long term resources of firm. 2. Add up the amo

    		•
  • Q : Define Income Statement How to do

    How to do income statement = from the revenues we will deduct all the expenses related to that period to get the income or loss. When the revenues are more than the expenses then it is income and when the expenses are more than the revenues then it is

    		•
  • Q : Calculation of NPV Calculation of NPV:

    Calculation of NPV: Calculation of NPV is done through the same method of discounting as described above. However in this case the rate is predefined for  discounting. It is the cost of overall long term resources, whether debt or equity. This co

    		•
  • Q : Calculate the PV You expect the price

    You expect the price of the stock 3 years from now to be $119.04 (i.e., you expect P ˆ   3  ?? = $119.04). Discounted at a 10% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $119.04.&nb

    		•
  • Q : Economic exposure How economic exposure

    How economic exposure can be defined in order to exchange the risk?

    		•
  • Q : What do you mean by the term turnover

    What do you mean by the term turnover?

    		•