8: Calculate the cross rate between the Costa Rican colón (CRC) and the Canadian dollar (CAD) from the following spot rates: CRC 600.29 = USD 1.00 and 1.2205 CAD = USD 1.00. What is the cross rate expressed as the number of CRC per CAD. Give your answer to 2 dp (2 decimal

Q: Ten annual returns are listed in the following table 19.9% 16.6% - 50.0% a. What is the arithmetic…

A: Arithmetic average return =  Total Return / Number of yearsResult:-Arithmetic average return = 8.05%

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Q: You are saving to buy a new car in two years.  You currently have $5000 in an account that pays 4%…

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Q: Which financing plan would you recommend based solely on EPS?

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Q: OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $502 million and…

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Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.