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problem1: Exchange rate If British pounds sell for $1.50 (United State) per pound, find what should dollars sell for in pounds per dollar?

problem2: Assume that 1 Danish krone could be buyed in the foreign exchange market for 14 U.S. cents today. If the krone appreciated 10% tomorrow against the dollar, how many krones would a dollar buy tomorrow?

problem3: In the spot market 7.8 Mexican pesos can be exchanged for one U.S. dollar.  A compact disc cost 15 dollar in the United States. If purchasing power parity (PPP) holds, find what should be the price of the same disc in Mexico?

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  • Category:- Basic Finance
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