BUS FPX 4070 Assessment 10 Managing Global Financial Issues
Phillip February 28, 2024 No Comments

BUS FPX 4070 Assessment 10 Managing Global Financial Issues

BUS FPX 4070 Assessment 10 Managing Global Financial Issues

Name

Capella university

BUS-FPX4070 Foundations in Finance

Prof. Name

Date

Problem 1: Currency Appreciation

Suppose that initially, 1 Euro could be purchased in the foreign exchange market today for $0.25. If the Euro appreciated by 10 percent tomorrow against the dollar, the calculation for determining how many Euros a dollar would buy tomorrow is as follows:

0.25×(1+0.10)=0.25×1.10=0.275

Therefore, tomorrow, 1 dollar would buy (0.275) Euros.

Problem 2: Cross Rates

Assuming the exchange rate between the US dollar and the Indian Rupee is 60 Rupees = $1, and the exchange rate between the dollar and the British pound is 1 Pound = $1.5. We can calculate the exchange rate between the Rupee and the pound as follows:

1 Pound÷1.5 USD

60 Rs (Rupee)×1.5 USD=90 Rs (Rupee)=1 Pound

Therefore, the exchange rate between the Rupee and the pound is (90) Rupees = (1) Pound.

References

Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management. Cengage Learning.

BUS FPX 4070 Assessment 10 Managing Global Financial Issues