Homework Answers
GBP/USD ask = 1.1689; Euro/USDask= 1.0554
Therefore to sell GBP for EURO, the ask rate is (1.1689*(1/1.0554) = 1.1076 (option a)
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Inia 6. Bid and ask Please refer to Table 2 in the datafile. What is the...
7. Triangular arbitrage Please refer to Table 2 in the datafile. Which of the triangles below...
7. Triangular arbitrage Please refer to Table 2 in the datafile. Which of the triangles below results in profitable arbitrage? (Note: you should use bid and ask rates for this question) a) USD --> JPY --> EUR --> USD b) JPY --> USD --> EUR --> JPY c) EUR --> JPY --> GBP --> EUR d) none of the them A B C DE bid Spot ask 1,0554 1,1689 102,77 Forward (3 months) mid 1,1052 1,0822 1,0532 1,1643 102,33 EUR/USD...
pabo inläm Gran 8. Expected spot rates Please refer to Table 2 in the datafile. Given...
pabo inläm Gran 8. Expected spot rates Please refer to Table 2 in the datafile. Given that forward rates are unbiased predictors of future spot rates, the EUR is expected to against the USD over the next 3 months. (Note: you should use mid rates for this question) a) appreciate by 4.83% b) appreciate by 4.61% c) depreciate by 4.83% d) depreciate by 4.61% A B Spot bid 1,0532 1,1643 102,33 ask 1,0554 1,1689 102,77 Forward (3 months) mid 1,1052...
how do i do 5. Cross rates Please refer to Table 2 in the datafile. Does...
how do i do
5. Cross rates Please refer to Table 2 in the datafile. Does the quoted rate differ from the cross rate for any of the following currency pairs? (Note: you should use mid rates for this question) a) none of them b) GBP/JPY c) EUR/JPY GBP/EUR d) F KU 60 00 in 0 fx E G HI C D B A Forward (3 months) Spot mid bid ask mid 1,1052 1,0543 EUR/USD 1,0532 1,0554 1,0822 GBP/USD 1,1689...
Use the rates provided below for the problem. Bid Ask Spot GBP/USD 1.5102 1.5195 Forward (90...
Use the rates provided below for the problem. Bid Ask Spot GBP/USD 1.5102 1.5195 Forward (90 day) GBP/USD 1.5005 1.5085 Bid Ask Spot USD/JPY 123.22 128.55 Forward (90 day) USD/JPY 120.25 122.35 How many JPY can you get for GBP 50 million today? Calculate Bid and Ask for GBP/JPY and show the calculations in details.
sorr5 now its correct 21. Currency options Please refer to Table 3 in the datafile. Suppose...
sorr5 now its correct
21. Currency options Please refer to Table 3 in the datafile. Suppose Ganado has a receivable of 1mln EUR due in 3 months. If the EUR/USD spot rate increases to 1.1830/1.1836 (bid/ask) over this period, how many USD will the company receive if the transaction exposure was hedged with currency options? (Note: use the spot bid when calculating the cost of a put option and the spot ask for the call option) a) 1 169 404...
Gransh 9. Forward hedge Please refer to Table 3 in the datafile. To hedge exposure from...
Gransh 9. Forward hedge Please refer to Table 3 in the datafile. To hedge exposure from a receivable of 1min EUR due in 3 months, Ganado could enter into a forward position, thus fixing an effective exchange rate of EUR/USD a) long; 1.1919 b) short; 1.1919 C) short; 1.1911 d) long; 1.1911 Ganado is a US company interested in hedging currency risk from its European business. You observe the following information related to hedging transaction exposure. ask bid 1,1823 EUR/USD...
Question 4 (total of 50 points) A. Use Table 4.1 for the spot and forward bid-ask...
Question 4 (total of 50 points) A. Use Table 4.1 for the spot and forward bid-ask rates for the Japanese yen/U.S dollar (/S) exchange rate to answer the following questions. Table 4.1. Spot and Forward Bid-ask Rates Period Days Forward Bid Rate Ask Rate spot l month 6 months 24 months 30 180 720 114.23 113.82 112.05 106.83 114.27 113.87 112.11 106.98 1. Calculate the mid-rates from the bid-ask rate quotes 2. Calculate the forward premium on the different maturities...
16. Net income Please refer to Table 5 in the datafile. What is the net income...
16. Net income Please refer to Table 5 in the datafile. What is the net income of Ganado Germany? a) 761 400 EUR b) 1 080 000 EUR c) 799 470 EUR d) 725 143 EUR Ganado Germany exportslightbulbs to the United States Based on a EUR/USD exchange rate of 1.0500, they expect the following results. Assumptions Price elasticity of demand Cost of capital -1,5 15% 2019 Sales volume (units) Sales price (USD) EUR/USD Sales price (EUR) Direct cost (EUR)...
Pound: Spot and Forward Mid Rates Bid Ask 14484 14481 14487 Yen: Spot and Forward 15)...
Pound: Spot and Forward Mid Rates Bid Ask 14484 14481 14487 Yen: Spot and Forward 15) Mid Rates Bid Ask Spot 129.87 129.82 129.92 Forward Rates 1 month 129.68 -20 -18 6 months 128.53 -136 -132 Swaps 2 year 117.65 1232 1212 3 year 115.50 1452 1422 1.4459 1.4327 -24 -154 -160 1.4250 1.4225 -238 -265 -230 -253 Refer to the above Table. The current spot rate of dollars per pound as quoted in a newspaper is A £1.4484/$: $0.6904/£...
QUESTION 21 Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is V115...
QUESTION 21 Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is V115 $1. Rinaldo finds out that the rate quoted in New York at 10:00 a.m. (3:00 p.m. London time) is V135 = $1. Rinaldo decides to buy yen in New York and sell it in London. Rinaldo is engaging in currency swapping. currency speculation carry trade. arbitrage. 1 points Save Answer QUESTION 22 Assume you are an Israeli investor, the symbol for the Israeli currency,...
7. Triangular arbitrage Please refer to Table 2 in the datafile. Which of the triangles below results in profitable arbitrage? (Note: you should use bid and ask rates for this question) a) USD --> JPY --> EUR --> USD b) JPY --> USD --> EUR --> JPY c) EUR --> JPY --> GBP --> EUR d) none of the them A B C DE bid Spot ask 1,0554 1,1689 102,77 Forward (3 months) mid 1,1052 1,0822 1,0532 1,1643 102,33 EUR/USD...
pabo inläm Gran 8. Expected spot rates Please refer to Table 2 in the datafile. Given that forward rates are unbiased predictors of future spot rates, the EUR is expected to against the USD over the next 3 months. (Note: you should use mid rates for this question) a) appreciate by 4.83% b) appreciate by 4.61% c) depreciate by 4.83% d) depreciate by 4.61% A B Spot bid 1,0532 1,1643 102,33 ask 1,0554 1,1689 102,77 Forward (3 months) mid 1,1052...
how do i do
5. Cross rates Please refer to Table 2 in the datafile. Does the quoted rate differ from the cross rate for any of the following currency pairs? (Note: you should use mid rates for this question) a) none of them b) GBP/JPY c) EUR/JPY GBP/EUR d) F KU 60 00 in 0 fx E G HI C D B A Forward (3 months) Spot mid bid ask mid 1,1052 1,0543 EUR/USD 1,0532 1,0554 1,0822 GBP/USD 1,1689...
sorr5 now its correct
21. Currency options Please refer to Table 3 in the datafile. Suppose Ganado has a receivable of 1mln EUR due in 3 months. If the EUR/USD spot rate increases to 1.1830/1.1836 (bid/ask) over this period, how many USD will the company receive if the transaction exposure was hedged with currency options? (Note: use the spot bid when calculating the cost of a put option and the spot ask for the call option) a) 1 169 404...
Gransh 9. Forward hedge Please refer to Table 3 in the datafile. To hedge exposure from a receivable of 1min EUR due in 3 months, Ganado could enter into a forward position, thus fixing an effective exchange rate of EUR/USD a) long; 1.1919 b) short; 1.1919 C) short; 1.1911 d) long; 1.1911 Ganado is a US company interested in hedging currency risk from its European business. You observe the following information related to hedging transaction exposure. ask bid 1,1823 EUR/USD...
Question 4 (total of 50 points) A. Use Table 4.1 for the spot and forward bid-ask rates for the Japanese yen/U.S dollar (/S) exchange rate to answer the following questions. Table 4.1. Spot and Forward Bid-ask Rates Period Days Forward Bid Rate Ask Rate spot l month 6 months 24 months 30 180 720 114.23 113.82 112.05 106.83 114.27 113.87 112.11 106.98 1. Calculate the mid-rates from the bid-ask rate quotes 2. Calculate the forward premium on the different maturities...
16. Net income Please refer to Table 5 in the datafile. What is the net income of Ganado Germany? a) 761 400 EUR b) 1 080 000 EUR c) 799 470 EUR d) 725 143 EUR Ganado Germany exportslightbulbs to the United States Based on a EUR/USD exchange rate of 1.0500, they expect the following results. Assumptions Price elasticity of demand Cost of capital -1,5 15% 2019 Sales volume (units) Sales price (USD) EUR/USD Sales price (EUR) Direct cost (EUR)...
Pound: Spot and Forward Mid Rates Bid Ask 14484 14481 14487 Yen: Spot and Forward 15) Mid Rates Bid Ask Spot 129.87 129.82 129.92 Forward Rates 1 month 129.68 -20 -18 6 months 128.53 -136 -132 Swaps 2 year 117.65 1232 1212 3 year 115.50 1452 1422 1.4459 1.4327 -24 -154 -160 1.4250 1.4225 -238 -265 -230 -253 Refer to the above Table. The current spot rate of dollars per pound as quoted in a newspaper is A £1.4484/$: $0.6904/£...
QUESTION 21 Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is V115 $1. Rinaldo finds out that the rate quoted in New York at 10:00 a.m. (3:00 p.m. London time) is V135 = $1. Rinaldo decides to buy yen in New York and sell it in London. Rinaldo is engaging in currency swapping. currency speculation carry trade. arbitrage. 1 points Save Answer QUESTION 22 Assume you are an Israeli investor, the symbol for the Israeli currency,...
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