SACR 1000 Lecture 1: Assignment 1

• School: University of Windsor
• Department: Sociology, Anthropology and Criminology
• Course: SACR 1000

Document Summary

Chapter 2: refer to the exchange rates given in the following table: The parts will be delivered on march 4 and are payable immediately in dollars. Vw decides to hedge its dollar position by entering into cme future contracts. Calculate vw"s net euro gain or loss on its futures position. The current spot rate is 100 yen per u. s. dollar or 0. 01000 dollar per yen. 1: describe how you could use an options contract to hedge against the risk of losses associated with the potential appreciation in the u. s. dollar. Chapter 3: use the table that follows to answer the question. Suppose the cost of the market basket in the united states is pu s. Check to see whether ppp holds for each of the countries listed, and determine whether we should expect a real appreciation or real depreciation for each country (relative to the united states) in the long run. Per$,( ef x/$) price of market basket in fx.