International Financial Management final Assignment

International pecuniary Management final - Assignment ExampleThe Swiss francs value and euros value ar expected to be $0.83 and $1.29 respectively, at the destination this year. What are the expected dollar cash flows of Live Co?6.Assuming the bid roam of a New Zealand dollar is $.36 while the ask locate is $.365 at Bank X. Assume the bid regularise of the New Zealand dollar is $.33 while the ask esteem is $.34 at Bank Y. Given this information, what would be your gain if you use $1,000,000 and execute locational trade? That is, how much will you end up with over and above the $1,000,000 you started with?7.Briefly explain the theory of interest rate comparison. If interest rate parity holds what type of arbitrage is not feasible? You may wish to utilize a map to explain when arbitrage opportunities exist and who can take advantage of the arbitrage.The theory of interest rate parity entails a situation where the inconsistency of interest rates between two given countries is equal to the difference of spot exchange rate and the forward exchange rate. Thus, if the theory of interest rate parity holds, an arbitrage will not be feasible if the spot exchange rate and forward exchange rate markets are in state of equilibrium. In contrast, if the spot exchange rate and forward exchange rate markets are in state of equilibrium, the arbitrage will be feasible.8.Assume that Mexicos inflation rate is lower than the U.S. inflation rate. This will cause U.S. consumers to increase their imports from Mexico and Mexican consumers to reduce their imports from the U.S. agree to purchasing fountain parity (PPP), this will result in a depreciation of the Mexico Peso.9.The interest rate in the U.K. is 4%, while the interest rate in the U.S. is 5%. The spot rate for the British pound is $1.50. According to the international Fisher effect (IFE), the British pound should adjust to a new level ofThe British