The following are quotes from a currency dealer in the New York currency market:
2. Using the quotes provided above, answer the following question. (Phrase your explanation in parts b and d: as “If you sell one (specify the currency) to the dealer, you will receive (specify the number of units and the currency)” or “If you buy one (specify the currency) from the dealer, you will pay (specify the number of units and the currency)”.)
2a. What is the base currency for the Australian dollar quote?
b. What is the dealer’s bid price for the Australian dollar? Explain what it means.
c. What is the base currency for the British pound quote?
d. What is the dealer’s ask price for the British pound? Explain what it means.
Homework Answers
2a) Base currency here is AUD
2b)If you buy one AUD from the dealer, you will pay 0.7179 USD. If
we swant to buy AUD we need to pay 0.7179 USD for the dealer
2c)Base currency here is GBP
2d)If you sell one GBP to the dealer, you will receive 1.2775 USD.
If we want to sell one GBP to dealer we get only 1.2775 USD in
return
Add Answer to:
The following are quotes from a currency dealer in the New York
currency market:
2. Using...
The following are quotes from a currency dealer in the New York currency market: Using the...
The following are quotes from a currency dealer in the New York
currency market:
Using the quotes provided above, answer the following question.
(Phrase your explanation in parts b and d: as “If you sell one
(specify the currency) to the dealer, you will receive
(specify the number of units and the currency)” or “If you
buy one (specify the currency) from the dealer, you will
pay (specify the number of units and the currency)”.)
1 Using the quotes provided...
The following are quotes from a currency dealer in the New York currency market: Spot exchange...
The following are quotes from a currency dealer in the New York
currency market:
Spot exchange rates and trades
1a. Which currency above has the widest bid ask spread?
Which has the narrowest?
b. Which currency above has the widest percentage bid ask
spread?
Which has the narrowest?
2. Using the quotes provided above, answer the following
question. (Phrase your explanation in parts b and d: as “If you
sell one (specify the currency) to the dealer, you will
receive...
The following are quotes from a currency dealer in the New York currency market: Using the...
The following are quotes from a currency dealer in the New York
currency market:
Using the quotes provided above, answer the following question.
(Phrase your explanation in parts b and d: as “If you sell one
(specify the currency) to the dealer, you will receive
(specify the number of units and the currency)” or “If you
buy one (specify the currency) from the dealer, you will
pay (specify the number of units and the currency)”.)
3. Using the quotes provided...
The following are quotes from a currency dealer in the New York currency market Using the...
The following are quotes from a currency dealer in the New York
currency market
Using the quotes provided above, answer the following question.
(Phrase your explanation in parts b and d: as “If you sell one
(specify the currency) to the dealer, you will receive
(specify the number of units and the currency)” or “If you
buy one (specify the currency) from the dealer, you will
pay (specify the number of units and the currency)”.)
1. Using the quotes provided...
Assume the quotes indicated below are from a dealer in the NY currency market. Forward prices...
Assume the quotes indicated below are from a dealer in the NY currency market. Forward prices are quoted as the absolute forward premium or discount (not percentage) in basis points (one basis point = .0001). Part 1. Forward exchange rates 1a. If the dealer’s spot market quotes for the British pound (£) are 1.3195 1.3200, and the dealer’s 6-month forward quotes for the euro are: -20 -12, what are the dealer’s effective 6-month forward bid and ask prices for the...
Assume the quotes indicated below are from a dealer in the NY currency market. Forward prices...
Assume the quotes indicated below are from a dealer in the NY currency market. Forward prices are quoted as the absolute forward premium or discount (not percentage) in basis points (one basis point = .0001). Part 1. Forward exchange rates 1a. If the dealer’s spot market quotes for the British pound (£) are 1.3195 1.3200, and the dealer’s 6-month forward quotes for the euro are: -20 -12, what are the dealer’s effective 6-month forward bid and ask prices for the...
Assume the quotes indicated below are from a dealer in the NY currency market. Forward prices...
Assume the quotes indicated below are from a dealer in the NY currency market. Forward prices are quoted as the absolute forward premium or discount (not percentage) in basis points (one basis point = .0001). Part 1. Forward exchange rates 1 a. If the dealer’s spot market quotes for the Canadian dollar are 1.3218 1.3222, and the dealer’s 9-month forward quotes for the Canadian dollar are: -81 -77, what are the dealer’s effective 9-month forward bid and ask prices for...
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The following are quotes for several U.S. currency dealers. Dealer A B C D E Japanese...
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The following are quotes from a currency dealer in the New York
currency market:
Using the quotes provided above, answer the following question.
(Phrase your explanation in parts b and d: as “If you sell one
(specify the currency) to the dealer, you will receive
(specify the number of units and the currency)” or “If you
buy one (specify the currency) from the dealer, you will
pay (specify the number of units and the currency)”.)
1 Using the quotes provided...
The following are quotes from a currency dealer in the New York
currency market:
Spot exchange rates and trades
1a. Which currency above has the widest bid ask spread?
Which has the narrowest?
b. Which currency above has the widest percentage bid ask
spread?
Which has the narrowest?
2. Using the quotes provided above, answer the following
question. (Phrase your explanation in parts b and d: as “If you
sell one (specify the currency) to the dealer, you will
receive...
The following are quotes from a currency dealer in the New York
currency market:
Using the quotes provided above, answer the following question.
(Phrase your explanation in parts b and d: as “If you sell one
(specify the currency) to the dealer, you will receive
(specify the number of units and the currency)” or “If you
buy one (specify the currency) from the dealer, you will
pay (specify the number of units and the currency)”.)
3. Using the quotes provided...
The following are quotes from a currency dealer in the New York
currency market
Using the quotes provided above, answer the following question.
(Phrase your explanation in parts b and d: as “If you sell one
(specify the currency) to the dealer, you will receive
(specify the number of units and the currency)” or “If you
buy one (specify the currency) from the dealer, you will
pay (specify the number of units and the currency)”.)
1. Using the quotes provided...
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