Page 49 - FINAL CFA SLIDES DECEMBER 2018 DAY 6
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Session Unit 5:
20. Currency Exchange Rates (B/A/B/C/A/A/B)
C. CAD % appreciation is (78 – 75) / 75 = 4.0%; JPY % depr., JPY direct quote : 1 / 75 = 0.0133
CAD/JPY and 1 / 78 = 0.0128 CAD/JPY. % depreciation = (0.0128 – 0.0133) / 0.0133 = –3.8%.
A. Start with one NZD and exchange for 1 / 1.6 = 0.625 USD. Exchange the USD for 0.625 × 2,400 =
1,500 IDR. We get a cross rate of 1,500 IDR/NZD or 1 / 1,500 = 0.00067 NZD/IDR.
A. USD/NZD 0.3500 × NZD/SEK 0.3100 = USD/SEK 0.1085.
B. The 180-day forward exchange rate is 1.3050 – 0.00425 = CHF/GBP 1.30075.
