Study Abroad: Paris to Moscow. On your summer study abroad program in Europe you stay an extra two weeks to travel from Paris to Moscow. You leave Paris with 1,700 euros (EUR) in your belt pack. Wanting to exchange all of these for Russian rubles (RUB), you obtain the following quotes: Spot rate on the dollar/euro exchange rate USD1.1207 = EUR1.00 Spot rate on the ruble/dollar exchange rate RUB62.09 = USD1.00 a. What is the Russian ruble to euro cross rate? b. How many Russian rubles will you obtain for your euros? c. What is the Russian ruble to euro cross rate? The Russian ruble/euro cross rate is Rbl $\boxed{}$ (Round to four decimal places.)
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1207 = EUR 1.00 RUB 62.09 = USD 1.00 To find the Russian ruble to euro cross rate, we need to find how many rubles are equal to one euro. We can do this by combining the two given exchange rates. Show more…
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Problem 5.1: Paris to St. Petersburg On your post-graduation celebratory trip, you are leaving Paris for St. Petersburg, Russia. You leave Paris with 10,000 euros in your money pouch. Wanting to exchange all of these for Russian rubles, you obtain the following quotes. Assumptions: Beginning your trip with euros Spot rate ($/‑) Spot rate (Rubles/$) Values: 10,000.00 1.4260 24.75 a) Calculate the cross rate (Rubles/‑) b) What would be the proceeds in Rubles? Converting your euros into Rubles
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3) (5 points) You observe the following: So = Yen 125/$. iRUBLE = 230%/YR . S0 = DM 0.65/ POUND. iDM = 1.2%/YR. F1 YR = Yen 125/$ S0 = RUBLE 1000/$. iYEN =0% /Yr. In equilibrium, the expected spot rate for RUBLE/$ (in 1 YR) expressed as Rubles per Dollar must be Ruble__________/$ 4) The spot rate last year was E 1/$. Over the last year the Euro devalued by 25% against the $. This means that against the Euro: a) $ got stronger by 20% b) $ got stronger by 25% c) $ got stronger by 33.3% d) $ got stronger by 38.2% e) none of the above. 5) Use data form question # 4. The new exchange rate is: a) E 0.75/$ b) E 1.25/$ c) E 1.33/$ d) E 1.38/$ e) none of the above.
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