The current spot rate between the U.S. dollar and the Swedish krona Is $1 = 6.8682 krona. Assume the Inflation rate in the United States is 5 percent and in Sweden is 1 percent. What is the expected spot rate in one year? (Do not round Intermediate calculations and round your final answer to 4 decimal places.) $ 6.6749 per Krona Expected exchange rate
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- The current spot exchange rate is HUF254 per $1.00. Long-run inflation in Hungary is estimated at 10 percent annually and 3 percent in the United States. If PPP is expected to hold between the two countries, what spot exchange should one forecast five years into the future? Note: Round your answer to 2 decimal places.Suppose that 1 Swedish krona could be purchased in the foreign exchange market today for $0.42. If the krona appreciated 6% tomorrow against the dollar, how many kronas would a dollar buy tomorrow? Do not round intermediate calculations. Round your answer to two decimal places. Suppose the exchange rate between the U.S. dollar and the South African rand was 19 rand = $1 and the exchange rate between the U.S. dollar and the Israeli shekel was 1 shekel = $0.2. What was the exchange rate between the South African rand and the Israeli shekel? Do not round intermediate calculations. Round your answer to two decimal places.In the spot market, $1 is currently equal to £.55. The expected inflation rate in the U.K. is 4 percent and in the U.S. 3 percent. What is the expected exchange rate two years from now if relative purchasing power parity exists? £.5391 £.5445 £.5555 £.5611 £.5667
- Suppose the current exchange rate for the Polish zloty is zl 2.88. The expected exchange rate in three years is zl 2.96. What is the difference in the annual inflation rates for the United States and Poland over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Difference in annual inflation rates %Currently, you can exchange $1 for SF 1.14. Assume that the average inflation rate in the U.S. over the next two years will be 2.5 percent annually as compared to 3 percent in Switzerland. Based on this information and relative purchasing power parity, which one of the following assumptions can you make regarding the next two years? A. The Swiss franc will appreciate against all currencies. B. The Swiss franc will appreciate against the U.S. dollar. C. The U.S. dollar will appreciate against all currencies. D. The U.S. dollar will appreciate against the Swiss franc. E. Both the U.S. dollar and the Swiss franc will appreciate against all other currencies.The current exchange rate is $1.19 / Euro. The expected inflation rate for the next year in the U.S. is 0.62% while it is 0.79% in the EU. What would be the expected exchange rate in one year’s time if Purchasing Power Parity holds? Provide your answer till 4 digits after the decimal point. Is the Euro expected to appreciate or depreciate?
- Suppose that 1 Danish krone could be purchased in the foreign exchange market today for $0.17. If the krone appreciated 9% tomorrow against the dollar, how many krones would a dollar buy tomorrow? Do not round intermediate calculations. Round your answer to four decimal places.Currently, the USD/MXN rate is 19.7800 and the six-month forward exchange rate is 20.1700. The six-month interest rate is 4.9% per annum in the U.S. and 6.2% per annum in Mexico. Assume that you can borrow MXP10,000,000 or its equivalent in USD. How much do you make/lose if you borrow the foreign currency and invest locally? (USD, no cents)The current spot rate between the pound and dollar is £.7562/$. The expected inflation rate in the U.S is 2.47 percent and the expected inflation rate in the U.K. is 3.03 percent. Assuming relative purchasing power parity holds, what will the exchange rate be next year?
- The annual inflation rate in the U.S is expected to be 2.68 percent and the annual inflation rate in Poland is expected to be 4.21 percent. The current spot rate between the zloty and dollar is Z4.0992/$. Assuming relative purchasing power parity holds, what will the exchange rate be in four years? Multiple Choice Z4.2902/$ Z4.3559/$ Z3.8540/$ Z3.9139/$ Z4.2256/$Today, each US Dollar can be exchanged for LLL 2.84 in LaLaLand. There is a general belief that three years from now the exchange rate will change to LLL 2.92. This information allows you to find the difference, each year, between the expected inflation rates between the USA and LaLaLand over the next three years. What is it? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Difference in annual inflation rates %Purchasing Power Parity If the current spot rate between the U.S. dollar and the Swedish krona was $1 = 7.6523 krona, and if the inflation rate in the United States was 6.1 percent and in Sweden it was 3.1 percent, then what would be the expected spot rate in one year? Note: Round your calculations and answer to 4 decimal places.