# Exchange Rate Assignment | Homework For You

11. An investor exchanged 20,000 euros for dollars last year at a dealer with a quote of \$1.0450-55. Today, she exchanged her dollars for euros at a dealer with the following quotes: €.9675-80. Find her profit/loss in terms of euros. Round intermediate steps to four decimals.

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a. 231.20

b. 230.43

c. 240.88

d. 220.75

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e. 4401.96

2. Assume that US GDP growth rate is expected to be 4% over the next 18 months while Great Britain’s GDP growth rate is predicted to be -2% over the same time period. Which of the following will occur if the GDP forecasts for both nations are accurate, all else being equal?

a. The US BOT balance will increase.

b.GreatBritians BOT balance will increase.

c.The BOT for both nations will be unaffected.

d.It cannot be determined. Get Finance homework help today

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