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In an earlier note I shared some thought on business in the international environment.
Is Bank USA exposed to an appreciation or depreciation of the dollar relative to the euro?
Estimate the profits or losses that could be earned from this strategy. Should Citi bank pursue this strategy?
How foreign exchange derivatives markets work. Explain the role of derivatives in hedging the foreign currency risk.
Is covered interest arbitrage feasible for US investors? In each case, please explain why covered interest arbitrage is or is not feasible?
Explain why the high Russian inflation has put severe pressure on the value of the Russian ruble.
Calculate the following exchange rates (ZAR and USD refer to the South African Rand and U.S. dollar respectively)
Before the Asian crisis, many investors attempted to capitalize on the high interest rates prevailing in the Southeast Asian countries
If Baylor Bank's forecast is correct, what will its dollar profit be from speculation over the five day period
Would Alaska's cash flows be favorable or unfavorably affected if the Mexican peso depreciates over time?
You are an expatriate working for Bank America in Hong Kong, and observe the following prices. Formulate an arbitrage strategy to profit from the situation.
Be sure to discuss the positive and negative aspects of using a gold standard. Please provide a reference page with at least 3 sources.
Exchange for dollars so that it can make it annual coupon payments to the U.S. creditors?
How would you use money market instruments (borrowing and lending) to profit?
Define exposure, differentiating between accounting and economic exposure. What role does inflation play?
What will annual dollar cash flows be if no devaluation occurs?
Q1. What scenarios are consistent with the U.S. dollar's depreciation? Q2. What alternatives are open to Nissan to improve its situation?
Q1. How is Chemex affected by exchange rate changes? Q2. Distinguish between Chemex's transaction exposure and its operating exposure.
Is there any sense in which MAC is exposed to the risk of foreign exchange rate changes that effect large multinational firms?
The concept of adequate disclosure continues to be one of the most important issues facing accountants. Disclosure may take various forms.
Boisjoly Watch Imports has agreed to purchase 15,000 Swiss watches for 1 million francs at today's spot rate.
Suppose the Federal Reserve Bank of the US unexpectedly raises interest rates in the US. How do you think this will impact the foreign-exchange market?
I want to get a start understanding under what conditions will it be profitable and should the hedge be bought?
Whether the value of the dollar will appreciate, depreciate, or remain the same relative to the Japanese yen.
What was the likely reaction of the foreign exchange market to Mr. Greenspan's statements. Explain.