--%>
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 is Capital Capital : In easy word,

    Capital: In easy word, capital signifies the amount or asset that is invested in business by businessman or owner of business. Whenever the business is closed, after paying exterior creditors, balance amount will be his capital that he can attain.

    		•
  • Q : APV capital budgeting framework How APV

    How APV capital budgeting framework is useful for analyzing the foreign capital expenditures?

    		•
  • Q : Different brooks of accounting Write

    Write down the different brooks of accounting?

    		•
  • Q : Social issues & person statuses Think

    Think of person you will who often irritates you or whose behaviour greats on your nerves. First list that person statuses and role then analysed his or her possible role expectations, role performance, role conflict and role strai

    		•
  • Q : Advance methods which are used in banks

    What are the advance methods which are used in banks presently?

    		•
  • Q : Comprehensive Problem in Accounting

    Accounting Comprehensive Problem The case involves one accounting cycle (regular journal entries, adjusting journal entries, preparing financial statements,

    		•
  • Q : Define Factitious Assets Factitious

    Factitious Assets: When any asset that has no market price which asset is termed as factitious assets. This is illustrated as expenditures of capital expenditure. The main illustration of such factitious assets is: Preliminary expenses, discount on is

    		•
  • Q : Balance sheet A listing of the

        A listing of the liabilities, assets, and equity of an entity at a point in time, the end of a month, or quarter, or year. It is one of the four financial statements required in a full financial report. The balance sheet gives the reader what the entity owns (assets)

    		•
  • Q : Controlling the translation exposure It

    It is, normally, not possible to fully remove both the translation exposure and transaction exposure.  In some cases, eradication of one exposure will also eliminate the other.  However in other cases, removal of one exposure really creates the other. 

    		•
  • Q : Forward cross-rates in German terms

    Compute 30-, 90-, and 180-day forward cross exchange rates between German mark and Swiss franc by utilizing the most recent quotations.  Specify forward cross-rates in “German” terms.

    		•