corporate finance 公司理财 机械工业出版社 ross ch031第31节答案.doc

PAGE B 《Corporate Finance》公司理财 Stephen A.Ross 机械工业出版社 Chapter 31: International Corporate Finance 31.1 a. In direct terms, $1.6317 / Pound In European terms, DM1.8110 / $ b. The Japanese yen is selling at a premium to the U.S. dollar in the forward markets. Today, at the spot rate, U.S.$ 1 buys ￥143, while at the 90-day future rate, U.S.$ 1 buys only ￥142.01. Clearly, Yen are getting more expensive in dollar terms. This is even easier to see in direct terms: At the spot rate, the yen cost just under 6 cents, while the 90-day yen costs over 7 cents. c. It will be important to Japanese companies that will receive or make payments in dollars. It will also be important to other international companies outside Japan that must make or receive payments in yen. For these companies, future cash flows depend on the exchange rate. d. The 3 month forward exchange rate is $0.6743 / SF. The amount of Swiss francs received will be SF148,301.94. = . We should sell dollars, because at the spot rate, it would be SF 149,454,49. e. Let be the spot rate of currency X for Y f. Both banks reduce their exposure to foreign exchange risk. If a bank finds another bank with a complimentary mismatch of cash flows in terms of foreign currencies, it should arrange a swap since both banks’ cash flows would be more closely matched. 31.2 a. It is easiest to see this by considering from the point of view of the DM: and write as the inverse: Then write as a ratio: For no arbitrage, the quote for must be 2.0, but instead it is 1.8. Therefore, an arbitrage opportunity does exist. b. Similarly, 100 / 2 = 50, and the quote is ￥50/DM, so arbitrage does not exist c. and , but the quote is ￥14/HKD, meaning arbitrage does exist 31.3 a. False. On the contrary, according to Relative Purchasing Power Parity, an expectation of higher inflation in Japan should cause the yen to depreciate against the dollar. b. False. Assuming that the forward market is efficient, any expectation of higher inflation in