The AUD/$ spot exchange rate is AUD1.60/$ and the SF/$ is SF1.25/$. The AUD/SF cross exchange rate is:

Transaction Exposure Problem: Suppose that you (i.e., company XYZ) are a US-based importer of goods from Canada. You expect the value of the Canada dollar to increase against the US dollar over the next 6 months. You will be making payment on a shipment of imported goods (CAD100,000) in 6 months and want to hedge your currency exposure. The US risk-free rate is 5% and the Canada risk-free rate is 4% per year. The current spot rate is $1.25/CAD, and the 6-month forward rate is $1.3/CAD. You can also buy a 6-month option on Canadian dollars at the strike price of $1.4 /CAD for a premium of $0.10/CAD. If XYZ enters a forward contract today, the guaranteed dollar cost for this CAD obligation today (not in six months) should be $ [l1] . (please leave two decimal points for your answer. Example: 123.23)

  Questions are based on the following information: UA purchased an aircraft from Airbus and was billed €30 million payable in one year. UA is concerned with the USD costs from international sales and would like to control exchange risk. The current spot exchange rate is $1.05/€ and one-year forward exchange rate is $1.10/€ at the moment. UA can buy a one-year option on euro with a strike price of $1.12/€ for a premium of $0.02 per euro. Currently, the annual interest rate is 5% in the euro zone and 6% in the U.S.  

A British firm offers a French customer the choice of paying a £10,000 bill due in 90 days with either £10,000 or €12,500. The value of this free option is _______.

  Assume the six-month European put option has a striking price of $1.05/CAD. Assume the option premium is $0.03/CAD. If at the due date, the value of the Canadian dollar has decreased to $1.00, will the option be exercised or not? What is the net profit/loss of the seller of the option?

SHORT ANSWER :SA2:  According to the “W curve” model of culture shock, when people return home after an extended stay in a foreign culture, they experience ______. another round of culture shock, this time, in their native culture a sense of “well-being,” thus, the “W” curve a sense of “weariness,” thus, the “W” curve no more culture shock What is the correct choice? Can you explain why this happens? Answer in two-four sentences:

Yo  …  en Europa todo el verano.

No creo que mañana nosotros …  tiempo.

Me alegro de que tú … un carro nuevo. 

Hypovolemia means: