20 Has the Turkish lira, TRY, appreciated or depreciated relative to the VND dur
ID: 2808968 • Letter: 2
Question
20 Has the Turkish lira, TRY, appreciated or depreciated relative to the VND during the time Azra holds the Vietnamese stock? 30-Apr: VND/USD 24,622 2-Jan: USD/TRY 0.3039 2-Jan: VND/USD 22,374 30-Apr: USD/TRY 0.2889 Appreciated Depreciated 21 Determine Azra's gain or loss on the Vietnamese dong (VND) investment? 22 Ava Mason works for the Bank of Montreal, Canada. She has earned a reward trip to Cozumel, Mexico and a gift of C$5.000!! Ava was told she can arrange her trip for departure in 3 months. Determine the relevant cross-rate for Ava as of today a) and in 3 months b). 3 Determine the difference in the cost of Ava's trip to Cozumel, now versus in 3 months. a) The trip will cost a total of MXN now, i.e., how many Mexican pesos can be purchased with 5,000 CND today? b) The trip will cost a total of MXN in 3 months. c) This implies a(n)(increase or decrease) of CND_in the cost of the trip to Ava in 3 months. (Format: Insert increase' or 'decrease', C$___)Explanation / Answer
20. 2-Jan: VND/USD 22,374 30-Apr: VND/USD 24,622 Here 1 USD = 24,622 in VND in 30-Apr which means USD is appreciated , VND is depprciated
2- Jan USD/TRY 0.3039 30-Apr USD/TRY 0.2889 Here TRY is appreciated relative to USD.
By comparing both the statements TRY is appreciated relative to VND
21. Azra's loss on the VND investment = 24,622- 22,374 = 2,248
22. Cross rate as of today (friday):
C$ in USD = 0.9315, MXN per USD = 12.987
C$ in MXN = 0.9315 * 12.987 = 12.0974 , 1 C$ = 12.0974 MXN
and in 3 Months, 1.088*12.0482 = 13.1084, 1 C$ = 13.1084 MXN
23. a) the total trip will cost = 5000*12.0974 MXN = 60,487 MXN
b) In 3 Months, = 5000*13.1084 = 65,542 MXN
c) this implies CND is appreciated related to the MXN.
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