Homework Answers
Bid Rate is a rate at which the DEALER is willing to buy 1 pound and
Ask Rate is the rate at which the DEALER is willing to sell 1 pound
Therefore, If we are buying pound or selling other currency, ask rate will be used and
If we are selling pound or buying other currency, bid rate will be used.
Accordingly, all calculations are done in below table:
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STQ4: [Foreign Exchange Trading You are given the following information about currency rates for pound sterling...
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The following table shows the different exchange rates for British Pound Sterling quoted on the London...
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TABLE 9-1 Foreign Currency Exchange Rates Exchange Rates: New York Closing Snapshot Friday, July 15, 2016...
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Use the following table to complete assignment Suppose that on March 1 of the current year, the peso-US$ exchange rate w...
Use the following table to
complete assignment
Suppose that on March 1 of the current year, the peso-US$
exchange rate was P5/$. On March 31 of the current year, the
exchange rate stood at P8/$. Calculate the 1-month percent change
in the value of the Mexican peso (= P).
Calculate the spot Korean won-Japanese yen exchange rate in W/¥.
(Korean won = W; Japanese yen = ¥)
Calculate the spot Taiwanese dollar-euro exchange rate in T$/€.
(Taiwanese dollar = T$;...
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Suppose today's exchange rate is $1.480/€. The three-month interest rates on dollars and euros are 4% per annum and 3% per annum, respectively. The three-month forward rate is $1.475/€. A foreign exchange advisory service has predicted that the euro will
<p style="box-sizing: inherit; margin-top: 0px; margin-bottom: 0px; font-family: "Aspira Webfont", Helvetica, Arial, sans-serif; color: rgb(34, 34, 34); white-space: normal; background-color: rgb(255, 255, 255); font-variant-numeric: inherit !important; font-variant-east-asian: inherit !important; font-stretch: inherit !important; line-height: inherit !important;">Suppose today's exchange rate is $1.480/€. The three-month interest rates on dollars and euros are 4% per annum and 3% per annum, respectively. The three-month forward rate is $1.475/€. A foreign exchange advisory service has predicted that the euro will appreciate to $1.495/€ within three months.</p><p...
ILLUSTRATIVE QUESTIONS - MANAGING EXPOSURE QUESTION ONE You are given the following information for the £ spot and one month forward and 3 months forward. spot 1 month forward 3 month forward US (dollars) Canadian (dollar) Netherland (Guilders) 1.5200-1.5210 1.8630-1.8640 4.05 1 - 4.061 4 0.32-0.27 cpm 0.30-0.20 cpm 23 - 17 cpm 8 8 | 10 - 20 cdis 4.4 - 5 5 cdis 8 2-1 1 cpm 0.89-0.84 cpm 0.90-0.80 cpm 6 3 - 6 1 cpm 4...
TABLE 9-1 Foreign Currency Exchange Rates Exchange Rates: New York Closing Snapshot Friday, July 15, 2016 U.S.-dollar foreign-exchange rates in late New York trading IN US$ PER USS Fri Fri Country/currency Thurs Thurs Americas Argentina peso 14.7260 o.0669 o.0679 14.9390 3.2784 Brazil real 3.2533 0.3050 0.3074 1.2891 Canada dollar 0.7758 1.2972 0.7709 1.2890 0.7758 1-month forward 0.7709 1.2971 1.2889 3-months forward 1.2970 o.7710 0.7759 1.2887 0.7760 1.2968 6-months forward 0.7711 655-10 650.40 o.001538 Chile peso o.001526 2916.55 2922.25 0.0003429 Colombia...
Use the following table to
complete assignment
Suppose that on March 1 of the current year, the peso-US$
exchange rate was P5/$. On March 31 of the current year, the
exchange rate stood at P8/$. Calculate the 1-month percent change
in the value of the Mexican peso (= P).
Calculate the spot Korean won-Japanese yen exchange rate in W/¥.
(Korean won = W; Japanese yen = ¥)
Calculate the spot Taiwanese dollar-euro exchange rate in T$/€.
(Taiwanese dollar = T$;...
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