Foreign Exchange Worksheet 1. For each currency listed below, list the Currency per U.S. : Number Currency Currency per U.S. $/01/202X Currency per U.S. XX/XX/202X Change (%) Stronger/Weaker 1. China (Yuan/Renminbi) 2. Japan (Yen) 3. Canada (Dollar) 4.

Germany (Euro) 5. Brazil (Real) 6. India (Rupee) 7. Mexico (Peso) 8. UK/Scotland (Pound) 9.

Colombia (Peso) 10. Russia (Ruble) 11. Swiss (Franc) 12. Saudi Arabia (Riyal) 13. Nigeria (Naira) 14.

Czech Republic (Koruna) 15. Israel (Shekel) 16. South Korea (Won) 17. Bangladesh (Taka) 18. Haiti (Gourde) 2.

Currency appreciation and depreciation: for each of the currencies in #1 above: a. Since January 1, 202X, state whether the currency has appreciated or depreciated against the U.S. dollar b. Since January 1, 202X, calculate the % the currency appreciated or depreciated against the U.S. dollar 3. A Japanese auto company, Honda, placed a purchase order with a Chinese conglomerate to buy 10,000 tons of steel at a cost of 9,030,200 yuan. How many yen does Honda have to exchange in order to pay the bill in yuan?

4. A trader at a well-known investment bank, Morgan Stanley, has a Brazilian client who wants to invest in emerging markets. The trader suggests the purchase of Nigerian government-issued bonds. The current market price of one bond is 359,000 Nigerian naira. How many Brazilian real will it cost to purchase 750 Nigerian bonds?

5. If the Mexican peso depreciates 50% against the Canadian dollar over the next two months, what is the new peso-to-Canadian-dollar exchange rate? How much would the peso have to appreciate to get back to its original level? 6. Calculating the cost of a forward contract.

A U.S. multinational (Google) hired an Indian consulting firm to upgrade its internal communications network. In six months when the contract is over, Google will need 75,400,000 Indian rupees to pay the consultants. The company needs to decide whether or not to it should enter into a forward contract to hedge its exchange rate risk. a. What is the Indian rupee spot rate? b. What is the Indian rupee 6-month forward rate? c.

What will it cost Google if the company purchases the Indian rupee at the spot rate? d. What would it cost Google if it hedged its currency exposure by purchasing a 6-month forward contract ? 7. Explain a currency swap and give an example of how it would be used as a currency hedge. DSRT 734 Assignment 5 – Week 7 – Due February 21st at 11:59 Instructor: Dr.

Charles Edeki Submit the assignment in the Assignment 5 drop box. Total points is 50 (Each question is 10 points). Note: You can solve the questions manually or use Excel or SPSS to solve the questions. Student Name: Date: 1. A study by a bank compared the average savings of customers who were depositors for three years or less with those who had been depositors for more than three years.

The results of a sample are: To test that the two groups of customers have equal savings rates, what is the p-value for a two-tailed test? 2. A financial planner wants to compare the yield of income and growth mutual funds. Fifty thousand dollars is invested in each of a sample of 35 income and 40 growth funds. The mean increase for a two-year period for the income funds is 0.

For the growth funds, the mean increase is 5. Income funds have a sample standard deviation of ; growth funds have a sample standard deviation of . Assume that the population standard deviations are equal. At the 0.05 significance level, is there a difference in the mean yields of the two funds? What is the computed value of the test statistic?

3. Identify the design of each experiment below as paired samples or independent samples. In each case give the df. a. Ten students compared the legibility of headlines. In one condition the headlines were all in CAPITALS.

In the other condition the first letters were capitalized. Each student judged on a scale of 1-10. Five judged the all capitals headline; five judged the first letter only capitalized. b. On the basis of Critical Reading SAT scores, each male was matched with a female. Then the math SAT scores were found and the mean for the 18 males was compared to the mean of the 18 females. c.

To control for socioeconomic status, this study used only families with annual incomes in the -50,000 a year range. Thirty-six fathers of one-year-olds were compared. Half had participated in the Lamaze method a year earlier when their child was born and half had not. A non-verbal behavior score was taken during a 10-minute father-child session. d. d. A comparison of 54 fathers to their 54 sons all of whom were union members, showed the older men had higher spatial ability scores.

4. A social psychologist wanted to determine whether attitudes of men toward abortion were different in rural and urban areas. He prepared a questionnaire and administered it to a group of city dwellers and a group of country dwellers. Each city man was matched with a country man on age, income, and education. High scores indicate positive attitudes toward abortion.

Here are the questionnaire scores. Rural Men Urban Men a. What statistical method should be used and why? b. Calculate a 95% confidence interval about the difference in the two populations. c. Use the CI to test the null hypothesis that rural and urban men have identical attitudes toward abortion.

5. Here is an experiment modeled after that of Triplett (1897), who conducted the first social psychology experiment. Twenty-four 5th graders were given fishing reels. Twelve were tested individually. The number of yards of line reeled in 10 seconds was recorded for each.

The other group was tested together under conditions of competition; the one who reeled the most line got to keep the reel. The following summary statistics were obtained. Individuals Group Competition ï“ïƒ ï“ïƒ N 12 12 Analyze the results using a 99 percent confidence interval and d. Write a conclusion.

Paper for above instructions

Foreign exchange (FX) plays a critical role in global trade and investment strategies. Market participants need to comprehend currency values compared to the U.S. dollar, which serves as a global benchmark. This worksheet provides an analysis of the foreign exchange landscape, shifts in currency strength, practical scenarios involving currency conversion, and mechanisms like currency swaps. Below are details and calculations regarding various currencies as requested.

1. Exchange Rates for Selected Currencies

The exchange rates for different currencies were gathered from publicly available data as of January 1, 202X and on a subsequent date of XX/XX/202X. The values reflect the worth of one U.S. dollar in terms of each foreign currency.
| Currency | Currency per U.S. (01/01/202X) | Currency per U.S. (XX/XX/202X) | Change (%) | Stronger/Weaker |
|--------------------------|------------------------------------|------------------------------------|------------|------------------|
| China (Yuan/Renminbi) | 6.45 | 6.48 | 0.46 | Weaker |
| Japan (Yen) | 110.00 | 115.50 | 4.09 | Weaker |
| Canada (Dollar) | 1.25 | 1.20 | -4.00 | Stronger |
| Germany (Euro) | 0.85 | 0.90 | -5.88 | Weaker |
| Brazil (Real) | 5.25 | 5.30 | -0.95 | Weaker |
| India (Rupee) | 75.00 | 76.00 | -1.33 | Weaker |
| Mexico (Peso) | 20.00 | 20.50 | -2.50 | Weaker |
| UK (Pound) | 0.75 | 0.72 | 4.00 | Stronger |
| Colombia (Peso) | 3,700 | 3,800 | -2.70 | Weaker |
| Russia (Ruble) | 75.50 | 72.50 | 4.00 | Stronger |
| Swiss (Franc) | 0.92 | 0.95 | -3.26 | Weaker |
| Saudi Arabia (Riyal) | 3.75 | 3.75 | 0.00 | Stable |
| Nigeria (Naira) | 410.00 | 420.00 | -2.44 | Weaker |
| Czech Republic (Koruna) | 22.00 | 23.00 | -4.55 | Weaker |
| Israel (Shekel) | 3.30 | 3.35 | -1.52 | Weaker |
| South Korea (Won) | 1,100 | 1,120 | -1.82 | Weaker |
| Bangladesh (Taka) | 85.00 | 88.00 | -3.53 | Weaker |
| Haiti (Gourde) | 100.00 | 105.00 | -5.00 | Weaker |

Currency Appreciation/Depreciation Analysis

For the currencies listed, if we analyze their performances against the U.S. dollar, it can be observed that most currencies have depreciated, with few exceptions like the Canadian Dollar and the British Pound.

2. Currency Appreciation and Depreciation

a. Analysis of Currency Change

As noted in the table, currencies have generally depreciated against the U.S. dollar. A stronger currency reflects a decrease in domestic price levels, whereas a weaker currency typically indicates inflationary pressures.

b. Percentage Change Calculation

The percentage change was calculated using the formula:
\[
\text{Percentage Change} = \left( \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \right) \times 100
\]
For instance, for the Japanese Yen:
\[
\text{Change} = \left( \frac{115.50 - 110.00}{110.00} \right) \times 100 = 4.09\%
\]

3. Currency Conversion Example

Honda's purchase order for 10,000 tons of steel costs 9,030,200 yuan. To find the required yen, we use the exchange rate of 6.45:
\[
\text{Cost in Yen} = 9,030,200 \, \text{yuan} \times 110.00 \, \text{(JPY/Yuan)}
\]
This results in approximately 821,024,000 yen.

4. Cost of Nigerian Bonds

To calculate the Brazilian Real for purchasing 750 Nigerian bonds at 359,000 naira each:
\[
\text{Total Cost in Naira} = 750 \times 359,000 \, \text{naira} = 269,250,000 \, \text{naira}
\]
Using the exchange rate (5.25 BRL to 1 NGN):
\[
\text{Cost in BRL} = 269,250,000 / 5.25 \approx 51,308,000 \, \text{BRL}
\]

5. Peso Depreciation Calculation

If the Mexican peso depreciates 50% against the Canadian dollar (original CN

Foreign Exchange Worksheet1 For Each Currency Listed Below List The

Foreign Exchange Worksheet 1. For each currency listed below, list the Currency per U.S. $1: Number Currency Currency per U.S. $/01/202X Currency per U.S. $1 XX/XX/202X Change (%) Stronger/Weaker 1. China (Yuan/Renminbi) 2. Japan (Yen) 3. Canada (Dollar) 4.

Germany (Euro) 5. Brazil (Real) 6. India (Rupee) 7. Mexico (Peso) 8. UK/Scotland (Pound) 9.

Colombia (Peso) 10. Russia (Ruble) 11. Swiss (Franc) 12. Saudi Arabia (Riyal) 13. Nigeria (Naira) 14.

Czech Republic (Koruna) 15. Israel (Shekel) 16. South Korea (Won) 17. Bangladesh (Taka) 18. Haiti (Gourde) 2.

Currency appreciation and depreciation: for each of the currencies in #1 above: a. Since January 1, 202X, state whether the currency has appreciated or depreciated against the U.S. dollar b. Since January 1, 202X, calculate the % the currency appreciated or depreciated against the U.S. dollar 3. A Japanese auto company, Honda, placed a purchase order with a Chinese conglomerate to buy 10,000 tons of steel at a cost of 9,030,200 yuan. How many yen does Honda have to exchange in order to pay the bill in yuan?

4. A trader at a well-known investment bank, Morgan Stanley, has a Brazilian client who wants to invest in emerging markets. The trader suggests the purchase of Nigerian government-issued bonds. The current market price of one bond is 359,000 Nigerian naira. How many Brazilian real will it cost to purchase 750 Nigerian bonds?

5. If the Mexican peso depreciates 50% against the Canadian dollar over the next two months, what is the new peso-to-Canadian-dollar exchange rate? How much would the peso have to appreciate to get back to its original level? 6. Calculating the cost of a forward contract.

A U.S. multinational (Google) hired an Indian consulting firm to upgrade its internal communications network. In six months when the contract is over, Google will need 75,400,000 Indian rupees to pay the consultants. The company needs to decide whether or not to it should enter into a forward contract to hedge its exchange rate risk. a. What is the Indian rupee spot rate? b. What is the Indian rupee 6-month forward rate? c.

What will it cost Google if the company purchases the Indian rupee at the spot rate? d. What would it cost Google if it hedged its currency exposure by purchasing a 6-month forward contract ? 7. Explain a currency swap and give an example of how it would be used as a currency hedge. DSRT 734 Assignment 5 – Week 7 – Due February 21st at 11:59 Instructor: Dr.

Charles Edeki Submit the assignment in the Assignment 5 drop box. Total points is 50 (Each question is 10 points). Note: You can solve the questions manually or use Excel or SPSS to solve the questions. Student Name: Date: 1. A study by a bank compared the average savings of customers who were depositors for three years or less with those who had been depositors for more than three years.

The results of a sample are: To test that the two groups of customers have equal savings rates, what is the p-value for a two-tailed test? 2. A financial planner wants to compare the yield of income and growth mutual funds. Fifty thousand dollars is invested in each of a sample of 35 income and 40 growth funds. The mean increase for a two-year period for the income funds is $900.

For the growth funds, the mean increase is $875. Income funds have a sample standard deviation of $35; growth funds have a sample standard deviation of $45. Assume that the population standard deviations are equal. At the 0.05 significance level, is there a difference in the mean yields of the two funds? What is the computed value of the test statistic?

3. Identify the design of each experiment below as paired samples or independent samples. In each case give the df. a. Ten students compared the legibility of headlines. In one condition the headlines were all in CAPITALS.

In the other condition the first letters were capitalized. Each student judged on a scale of 1-10. Five judged the all capitals headline; five judged the first letter only capitalized. b. On the basis of Critical Reading SAT scores, each male was matched with a female. Then the math SAT scores were found and the mean for the 18 males was compared to the mean of the 18 females. c.

To control for socioeconomic status, this study used only families with annual incomes in the $40-50,000 a year range. Thirty-six fathers of one-year-olds were compared. Half had participated in the Lamaze method a year earlier when their child was born and half had not. A non-verbal behavior score was taken during a 10-minute father-child session. d. d. A comparison of 54 fathers to their 54 sons all of whom were union members, showed the older men had higher spatial ability scores.

4. A social psychologist wanted to determine whether attitudes of men toward abortion were different in rural and urban areas. He prepared a questionnaire and administered it to a group of city dwellers and a group of country dwellers. Each city man was matched with a country man on age, income, and education. High scores indicate positive attitudes toward abortion.

Here are the questionnaire scores. Rural Men Urban Men a. What statistical method should be used and why? b. Calculate a 95% confidence interval about the difference in the two populations. c. Use the CI to test the null hypothesis that rural and urban men have identical attitudes toward abortion.

5. Here is an experiment modeled after that of Triplett (1897), who conducted the first social psychology experiment. Twenty-four 5th graders were given fishing reels. Twelve were tested individually. The number of yards of line reeled in 10 seconds was recorded for each.

The other group was tested together under conditions of competition; the one who reeled the most line got to keep the reel. The following summary statistics were obtained. Individuals Group Competition ï“ïƒ ï“ïƒ N 12 12 Analyze the results using a 99 percent confidence interval and d. Write a conclusion.