Currency Comparison
Instructions 1) Pick two currencies 2) In a word-processed document of no more than 1000 words, please discuss the following: – Discussion of any trade or interest rate factors – Description of economic conditions and forecasts · – Analysis of the reasons for any changes. – Your report should include a clearly labeled graph of the currency pair and analysis of their performance over the past year including – Test the following theories (Excel file needs to be provided testing the below theories) o International fisher effect – o Purchasing Power Parity (PPP) – o Estimate NPV using home and foreign currency approaches – Do these theories apply to your 2 currencies? 3) EXCEL file needs to be provided with the (3) theories tested and data Make sure to properly reference all of your sources and clearly justify any assumptions.