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4. Suppose that the market expects that the exchange rate between the yen and the franc will rise by 5%, from the Japanese perspective. If so, what will be this expected future exchange rate, from the Japanese perspective? [To 3 decimal place.]

5. Suppose that the market expects that the exchange rate between the yen and the franc will rise by 5%, from the Japanese perspective. If so, what will be this expected future exchange rate, from the Swiss perspective? [To 5 decimal place.]

6. Over the last three years, the increased British preference for American goods has caused the exchange rate to change by 5.5% (from the British perspective) to the value shown in the table. From the British perspective, what must have been the exchange rate three years ago? [To 4 decimal place.]

Consider the exchange rates shown in the table (current for today) for these six currencies the U.S. dollar, the Euro, the British pound, the Japanese yen, the Swiss franc, and the Canadian dollar (partial). The numbers in the table show the amount of the currency heading that column it takes to buy one unit of the currency heading that row. For example, in the first column we can see that it takes 1.3546 U.S. dollars to buy 1 British pound. Likewise, in the third column we can see that it takes 0.7382 British pounds to buy 1 U.S. dollar. Of course these numbers are reciprocals of one another, i.e., 1/(1.3546) = 0.7382. Use this table to answer the following questions. Forex Exchange Rates Table Symbol USD EUR GBP JPY + CHF USD 1 0.8626 0.7382 111.07 0.9310 EUR 1.1593 1 0.8558 128.79 1.0791 12 GBP 1.3546 1.1685 1 150.46 1.2608 JPY 0.0090 0.0078 0.00665 1 0.0084 CHF 1.0741 0.9268 0.7932 119.30 1 1 CAD 0.7907 0.6818 0.5836 87.80 0.7358 Your answers must be exact and follow this protocol: You must round off each answer to the number of decimal places specified. You must enter just a number for #1-#9 with no currency sign. [Each @ 2pts.] [For example, 4.3 and not $4.3 nor 4.3, etc.] For values less than one unit, include a zero before the decimal. [For example, 0.654 and not .654] For #10, express in percentage terms use the "%" sign, carried to three decimal places. [At 4 pts.] Consider the exchange rates shown in the table (current for today) for these six currencies the U.S. dollar, the Euro, the British pound, the Japanese yen, the Swiss franc, and the Canadian dollar (partial). The numbers in the table show the amount of the currency heading that column it takes to buy one unit of the currency heading that row. For example, in the first column we can see that it takes 1.3546 U.S. dollars to buy 1 British pound. Likewise, in the third column we can see that it takes 0.7382 British pounds to buy 1 U.S. dollar. Of course these numbers are reciprocals of one another, i.e., 1/(1.3546) = 0.7382. Use this table to answer the following questions. Forex Exchange Rates Table Symbol USD EUR GBP JPY + CHF USD 1 0.8626 0.7382 111.07 0.9310 EUR 1.1593 1 0.8558 128.79 1.0791 12 GBP 1.3546 1.1685 1 150.46 1.2608 JPY 0.0090 0.0078 0.00665 1 0.0084 CHF 1.0741 0.9268 0.7932 119.30 1 1 CAD 0.7907 0.6818 0.5836 87.80 0.7358 Your answers must be exact and follow this protocol: You must round off each answer to the number of decimal places specified. You must enter just a number for #1-#9 with no currency sign. [Each @ 2pts.] [For example, 4.3 and not $4.3 nor 4.3, etc.] For values less than one unit, include a zero before the decimal. [For example, 0.654 and not .654] For #10, express in percentage terms use the "%" sign, carried to three decimal places. [At 4 pts.]

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