1. Is the euro appreciating or depreciating against the U.S. dollar? Explain
2. Is the Swiss franc appreciating or depreciating against the U.S. dollar? Why?
3. Is the Mexican peso appreciating or depreciating against the U.S. dollar? Why?
Using cross-rates, based on the spot rate, how many francs will the euro buy, how many pesos will the franc buy, and how many euro will the peso buy?
|
US$ per 1 euro |
US$ per 1 franc |
Mexican peso per US$1 |
| Spot rate |
1.21 |
1.03 |
19.68 |
| 30-day forward rate |
1.19 |
1.06 |
20.15 |
| 60-day forward rate |
1.15 |
1.07 |
21.28 |