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?