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Chapter 19 _________________________________ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000 $0.8437 $2,531 $4,219 $5,906 $8,437 Titman/Keown/Martin Financial Management 11e 1
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Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

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Page 1: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

C$1 C$3,000 C$5,000 C$7,000 C$10,0000

2000

4000

6000

8000

10000

$0.8437

$2,531

$4,219

$5,906

$8,437

Titman/Keown/Martin Financial Management 11e 1

Page 2: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

1 yen 500,000 yen 1,000,000 yen 1,500,000 yen 2,000,000 yen0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

$0.004684

$2,342

$4,684

$7,026

$9,368

SFr 1 SFr 10,000 SFr 25,000 SFr 40,000 SFr 50,0000

10000

20000

30000

40000

$0.5139

$5,139

$12,848

$20,556$25,695

2 Titman/Keown/Martin Financial Management 11e

Page 3: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

Titman/Keown/Martin Financial Management 11e 3

Page 4: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

4 Titman/Keown/Martin Financial Management 11e

Page 5: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

$1 $2,000 $6,000 $8,000 $10,0000

1000000

2000000

213.493

426,985

1,280,956

1,707,942

2,134,927

Titman/Keown/Martin Financial Management 11e 5

Page 6: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

$1 $3,000 $6,000 $10,000 $15,0000

10000

20000

30000

1.9459

5,838

11,675

19,459

29,189

$1 $2,000 $9,000 $15,000 $20,0000

4000

8000

12000

16000

20000

24000

28000

1.18532,371

10,668

17,780

23,706

6 Titman/Keown/Martin Financial Management 11e

Page 7: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

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Page 8: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

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Page 9: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

Spot 30-Day 90-Day0.82

0.83

0.83

0.84

0.84

0.85

0.85

0.86

0.84370.8417

0.8395

Titman/Keown/Martin Financial Management 11e 9

Page 10: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

Spot 30-Day 90-Day0

0

0

0

0.00468400.0047170

0.004781

Spot 30-Day 90-Day0.49

0.5

0.51

0.52

0.53

0.54

0.51390.5169

0.5315

10 Titman/Keown/Martin Financial Management 11e

Page 11: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

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Page 12: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

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Page 13: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

Spot 30-Day 90-Day0.83

0.84

0.84

0.84

0.84

0.84

0.85

0.85

0.8437

0.8417

0.8395

Titman/Keown/Martin Financial Management 11e 13

Page 14: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

Spot 30-Day 90-Day0

0

0

0

0.0046840

0.0047170

0.0047810

Spot 30-Day 90-Day0.51

0.51

0.52

0.52

0.53

0.53

0.51390.5169

0.5315

14 Titman/Keown/Martin Financial Management 11e

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Chapter 19_________________________________MyFinanceLab Solutions

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Chapter 19_________________________________

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Chapter 19_________________________________

MyFinanceLab Solutions

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Chapter 19_________________________________

MyFinanceLab Solutions

C$ Yen SFr00.10.20.30.40.50.60.70.80.9

10.8437

0.004684

0.5139

20 Titman/Keown/Martin Financial Management 11e

Page 21: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

C$ Yen SFr00.10.20.30.40.50.60.70.80.9

10.8437

0.004684

0.5139

Titman/Keown/Martin Financial Management 11e 21

Page 22: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

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Page 23: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

Canada spot rate Canada 6-mos. Japan spot rate Japan 6-mos. Swiss spot rate Swiss 6-mos. UK spot rate UK 6-mos.00.2

0.40.60.8

11.21.4

1.61.8

$0.9700 $0.9698

$0.010798 $0.010803

$0.9772 $0.9783

$1.6028 $1.6008

Titman/Keown/Martin Financial Management 11e 23

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Page 25: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

C$1 C$5,000 C$9,000 C$13,000 C$15,0000

20004000

6000

800010000

12000

1400016000

18000

$0.8439

$4,220

$7,595

$10,971$12,659

Titman/Keown/Martin Financial Management 11e 25

Page 26: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

1 250,000 1,000,000 1,250,000 1,500,0000

2000

4000

6000

8000

10000

12000

14000

16000

$0.004680$1,170

$4,680$5,850

$7,020

SFr 1 SFr 14,000 SFr 31,000 SFr 48,000 SFr 55,0000

10000

20000

30000

40000

$0.5140

$7,196

$15,934

$24,672$28,270

26 Titman/Keown/Martin Financial Management 11e

Page 27: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

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Chapter 19_________________________________

MyFinanceLab Solutions

$1 $5,000 $10,000 $15,000 $20,0000

1000000

2000000

3000000

4000000

213.675

1,068,376

2,136,752

3,205,128

4,273,504

28 Titman/Keown/Martin Financial Management 11e

Page 29: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

$1 $500 $1,000 $3,000 $5,0000

10000

1.9455 973

1,946

5,837

9,728

$1 $1,000 $5,000 $10,000 $15,0000

4000

8000

12000

16000

20000

24000

28000

1.1850 1,185

5,925

11,850

17,775

Titman/Keown/Martin Financial Management 11e 29

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Chapter 19_________________________________

MyFinanceLab Solutions

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Page 31: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

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Page 32: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

Spot 30-Day 90-Day0.82

0.83

0.83

0.84

0.84

0.85

0.85

0.86

0.84390.8410

0.8390

32 Titman/Keown/Martin Financial Management 11e

Page 33: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

Spot 30-Day 90-Day0

0

0

0.0046800

0.0047200

0.004787

Spot 30-Day 90-Day0.49

0.5

0.51

0.52

0.53

0.54

0.51400.5179

0.5335

Titman/Keown/Martin Financial Management 11e 33

Page 34: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

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Chapter 19_________________________________MyFinanceLab Solutions

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Page 36: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

Spot 30-Day 90-Day0

0

0

0

0

0.0046800

0.0047200

0.0047870

36 Titman/Keown/Martin Financial Management 11e

Page 37: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

Spot 30-Day 90-Day0.83

0.84

0.84

0.84

0.84

0.84

0.85

0.85

0.8439

0.8410

0.8390

Spot 30-Day 90-Day0.51

0.51

0.52

0.52

0.53

0.53

0.5140

0.5179

0.5335

Titman/Keown/Martin Financial Management 11e 37

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Chapter 19_________________________________MyFinanceLab Solutions

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Chapter 19_________________________________

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Chapter 19_________________________________MyFinanceLab Solutions

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Page 42: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

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Page 43: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________MyFinanceLab Solutions

C$ yen SFr00.10.20.30.40.50.60.70.80.9

10.8439

0.004680

0.5140

Titman/Keown/Martin Financial Management 11e 43

Page 44: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

Chapter 19_________________________________

MyFinanceLab Solutions

C$ yen SFr00.10.20.30.40.50.60.70.80.9

10.8439

0.004680

0.5140

44 Titman/Keown/Martin Financial Management 11e

Page 45: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

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Chapter 19_________________________________

MyFinanceLab Solutions

Canada spot rate Canada 6-mos. Japan spot rate Japan 6-mos. Swiss spot rate Swiss 6-mos. UK spot rate UK 6-mos.00.2

0.40.60.8

11.21.4

1.61.8

0.9700 0.9698

0.010798 0.010803

0.9772 0.9783

1.6028 1.6008

46 Titman/Keown/Martin Financial Management 11e

Page 47: Chapter 19wpscms.pearsoncmg.com/.../10178/10422372/solutionsmanual/chapter19.pdfChapter 19 _____ MyFinanceLab Solutions C$1 C$3,000 C$5,000 C$7,000 C$10,000 0 2000 4000 6000 8000 10000

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Chapter 19_________________________________

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Chapter 19_________________________________

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Chapter 19_________________________________MyFinanceLab Solutions

( ) ( ) ( ) ( )

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