currency homework

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1.The current exchange rate for Euro is $1.25 (USD)/Euro. The current exchange rate for the Australian Dollar (AUD) is $1.04 (USD)/AUD. Using cross rates, what is the implied direct and indirect quotes for the AUD versus the Euro?��Your response should be at least 100 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.”

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2.You are given three exchange rates below, assess (yes/no) whether an opportunity exists for arbitrage (support your answer with an explanation).�• 140 Yen/Euro�• 1.22 Euro/CHF (Swiss Franc)�• 184 Yen/CHF��Your response should be at least 100 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

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3.You are given three exchange rates below. Assess (yes/no) whether an opportunity exists for arbitrage (support your answer with an explanation).�• 25 Yen(Japan)/Yuan (China)�• 6.8 Yuan/USD�• 184 Yen/USD��Your response should be at least 100 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

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