Consider the following rates Tere EUR JPY LBP/USD LBP JPY USD/JPY 0.009 a) Find the bid...

Question

Question

Answer 1

Answer #1

Solution:-

(a)

The following information available in the question:

Bid rate (EUR/JPY) = 0.0085

Bid rate (LBP/JPY) = 14.19

Thus,

Bid rate (LBP/EUR) = 14.19/0.0085 = 1,669.41

(b)

Ask rate (LBP/USD) = 1,514

Ask rate (USD/JPY) = 0.0094

Ask rate (EUR/JPY) = 0.0083

Ask rate (LBP/JPY) = 0.0094*1,514 = 14.23

Ask rate (LBP/EUR) = 14.23/0.0083 = 1,714.5

Answer 2

Similar Homework Help Questions

3. Cross-rate Bid-Ask Quotes. National Bank quotes the following rates for the Euro and Yen: EUR/NZD Bid: 0.5153 Ask: 0....

3. Cross-rate Bid-Ask Quotes. National Bank quotes the following rates for the Euro and Yen: EUR/NZD Bid: 0.5153 Ask: 0.5168 JPY/NZD Bid: 81.14 Ask: 81.32 Calculate the bid/ask quotes for JPY/EUR.
1) If the bid-ask quotation for the USD is EUR 1 - EUR 1.05, that is,...

1) If the bid-ask quotation for the USD is EUR 1 - EUR 1.05, that is, EUR per USD is 1 (bid) - 1.05 (ask), then: (recall 1/1.05 -0.95] A) the bank buys the USD from you (the client) for EUR 1. B) the bank buys the EUR from you (the client) for USD 0.95. the bank buys the EUR from you (the client) for USD 1. D) Both A&B. 2) Assume the USD depreciates against the EUR. Which scenario...
Inia 6. Bid and ask Please refer to Table 2 in the datafile. What is the...

Inia 6. Bid and ask Please refer to Table 2 in the datafile. What is the appropriate spot exchange rate to sell GBP for EUR? (Note: you should use bid and ask rates for this question) a) 1.1076 Ige ral b) 1.1065 lue c) 1.1054 d) 1.1032 H А Spot Forward (3 months) ask mid mid bid 1,0532 1,1643 102,33 1,0554 1,1689 102,77 1,1052 1,0822 EUR/USD GBP/USD USD/JPY GBP/EUR EUR/JPY GBP/JPY 1,0543 1,1666 102,55 1,1065 107,85 119,63 107,60 119,14 108,10...

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.
please show all steps Country Switzerland (Franc CHF Euro € BID (EUR/CHF)=0.65/1.25; Ask (EUR/CHF)=0.68/1.15 USD equivalent...

please show all steps Country Switzerland (Franc CHF Euro € BID (EUR/CHF)=0.65/1.25; Ask (EUR/CHF)=0.68/1.15 USD equivalent BID ASK $0.65/CHF $0.68/CHF $1.15/€ / $1.2/€ You find the reciprocal of each to find (CHF/EUR) where the bid becomes the ask and the ask becomes the bid
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...

Calculate the following currency forward rates A) 1-year USD/CAD Spot rate: Risk-free USD rate: Risk-free CAD...

Calculate the following currency forward rates A) 1-year USD/CAD Spot rate: Risk-free USD rate: Risk-free CAD rate: 1.4040 2.37% p.a.d 0.92% pa.d B) 6-month CHF/JPY Spot rate: Risk-free CHF rate: Risk-free JPY rate: 121.61 -0.70% pa.d 0.19% p.a.d C) 3-month EUR/MXN Spot rate: Risk-free EUR rate: Risk-free MXN rate: 23.8 -0.61% 5.30%
Problem 4 The following rates are given: Bid CAD/EUR 1.3620 CHF/EUR 1.2365 Ask 1.3630 1.2370 dand...

Problem 4 The following rates are given: Bid CAD/EUR 1.3620 CHF/EUR 1.2365 Ask 1.3630 1.2370 dand ask rate andthe spread on the Canadian dollar against the Swiss franc.
Angela has 1 million NZD and faces the following rates: EUR/USD=1.1110/12, USD/NZD=1.4505/09, EUR/NZD= 1.6136/1.6140. a) Can Angela make a profit by trading the three currencies? If so, how much profi...

Angela has 1 million NZD and faces the following rates: EUR/USD=1.1110/12, USD/NZD=1.4505/09, EUR/NZD= 1.6136/1.6140. a) Can Angela make a profit by trading the three currencies? If so, how much profits in terms of NZD can she make with her own fundsin one round? (Hint: choose the right bid or ask price for trading) b) If all traders on the spot market behave like Angela, what would happen to the spot rates of the three currencies and why? (Hint: the spread...

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...