1. a) +40%; b) −28.58%.

2. a) −21% and +27%; b) 97.5 to 102.25.

3. a) 0.25; b) 3.7 to 4.3; c) 3.4 and 3.2 to 3.7.

4. 0.94, 1.25, +32.97%.

5. a) A round-trip (triangular arbitrage) would yield a risk-free profit of KRW 0.0135 per KRW 1 traded; c) profit of KRW 0.0093 per KRW 1 traded.

6. The prevailing exchange rate would have to be adjusted as follows:

- Preferential imports:
*S*_{R},$(*t*) × 1.03 - Semi-preferential imports:
*S*_{R},$(*t*) × 1.06 - Essential imports:
*S*_{R},$(*t*) × 1.09 - Nonessential imports:
*S*_{R},$(*t*) × 1.11where

*S*_{R},$(*t*) is the rupee price of one US$ at time*t*.

7. a) −43.14%; b) profit of $13.88.

8. The lira is very slightly undervalued by 0.28%.

9. a) 1.08; b) overvalued by 8%.

10. a) 13.99%; b) ARS 3.5877 = US$1; overvalued.

11. a) 1.52; b) grossly undervalued.

13. a) 2.26 and 3.75; b) undervalued; c) 5.10.

2. FF 5 = $1; FF 4.95 to FF 5.05.

4. −50%, +100%.

5. 15.27.

6. $0.0364/THB inclusive of an opportunity cost of $0.0087/THB.

7. −58.33%, 140%.

8. b) 25.85%.

1. US$1.489 billion.

2. 0.084% or 84 bp.

3. US$255.049 million.

4. a) $0.00104 per ruble transacted; b) RUB 0.997 per dollar transacted.

5. THB 23.85 = SGD 1.

6. THB price of one BRL is 17.89.

7. 0.0029; 0.0130; 0.0290.

8. b) 1.1%, 0.45%, 0.29%, 0.15%; c) €0.8063−0.8071

9. Profit of DKR 0.90 per euro sold forward.

10. NYC dollar price of one yen is: 0.010114 < [S_{$,¥}(*t*)*]^{NYC} < 0.010191.

11. €2,498.

13. £30,000; £24,719 per £100 million transacted.

15. Barings' ...

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