ZuoTi.Pro
Question

Use the following spot and forward bid-ask rates for the Australian dollar/U.S. dollar exchange rate from...

Use the following spot and forward bid-ask rates for the Australian dollar/U.S. dollar exchange rate from 2020. Calculate the annual forward premium on AUD for all maturities

AUD/USD Spot: Bid=0.6709 and Ask= 0.6705

Bid

Ask

AUD/USD Spot

0.6709

0.6705

AUD/USD 1-Month Forward

3.267

3.893

AUD/USD 2-Month Forward

7.4

7.6

AUD/USD 3-Month Forward

9.969

11.731

AUD/USD 6-Month Forward

21.4

21.9

AUD/USD 1-Year Forward

41.3

42.3

AUD/USD 2-Year Forward

65.4

70.4
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1


IF ANY QUERY, FEEL FREE TO ASK Solution Here, Forward are quoted in points that is premium. Hence, to calculate premium these

0 0
Add a comment
Know the answer?
Add Answer to:
Use the following spot and forward bid-ask rates for the Australian dollar/U.S. dollar exchange rate from...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Use the following spot and forward​ bid-ask rates for the Japanese​ yen/U.S. dollar​ (¥/$) exchange rate...

    Use the following spot and forward​ bid-ask rates for the Japanese​ yen/U.S. dollar​ (¥/$) exchange rate from September​ 16, 2010, to answer the following​ questions: a. What is the annual forward premium on the yen for all​ maturities? (Assume that the U.S. dollar is the home currency. Also use the​ Mid-Rate values computed in part​ a.) b. Which maturities have the smallest and largest forward​ premiums? Period ¥/$ Bid Rate ¥/$ Ask Rate spot 85.99 86.03 1 month 85.61 85.66...

  • Dollar/Euro Forwards. Use the following spot and forward​ bid-ask rates for the U.S.​ dollar/euro ​(US$/euro€​) from...

    Dollar/Euro Forwards. Use the following spot and forward​ bid-ask rates for the U.S.​ dollar/euro ​(US$/euro€​) from December ​10, 2010, to answer the following​ questions: a. What is the​ mid-rate for each​ maturity? b. What is the annual forward premium for all​ maturities? c. Which maturities have the smallest and largest forward​ premiums? Period Bid Rate Ask Rate spot 1.32311.3231 1.32321.3232 1 month 1.32301.3230 1.32311.3231 2 months 1.32281.3228 1.32291.3229 3 months 1.32241.3224 1.32271.3227 6 months 1.32151.3215 1.32181.3218 12 months 1.31941.3194 1.31981.3198...

  • 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...

  • Canadian Dollar: Spot and Forward (C$/$) Euro: Spot and forward ($/€) Mid rates Bid Ask Mid...

    Canadian Dollar: Spot and Forward (C$/$) Euro: Spot and forward ($/€) Mid rates Bid Ask Mid rates Bid Ask spot 1.2645 1.2639 1.2651 1.2390 1.2387 1.2393 Forward 3-week 23 27 19 15 3-month 135 128 155 146 7a. How much $100 will cost you in Canadian Dollar and Euro? (Hint: you are buying USD). 7b. What are 3-week and 3-month forward bid and ask rate for Canadian Dollar and Euro? 7c. Based on information above, what are the profit margin...

  • The annualized forward when the Japanese yen/U.S. dollar exchange rates are JPY118.25 per USD spot and...

    The annualized forward when the Japanese yen/U.S. dollar exchange rates are JPY118.25 per USD spot and JPY116.85 per USD quoted on a one month forward contract is discount; 10.44% O premium: 7.28% discount: 14.21% O premium; 12.41%.

  • The spot quote for the Australian Dollar is $0.5794 bid and $0.5802 ask. The forward pips...

    The spot quote for the Australian Dollar is $0.5794 bid and $0.5802 ask. The forward pips for 12 months are 52/48. Calculate the forward bid/ask prices. You buy a 90-day forward contract for 850,000€. The forward rate is $1.107/€. In 90 days the spot rate is rate is $1.105/€. How much do you pay for the Euros in total?

  • 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.

  • SPOT AND FORWARD RATES Arvin Australian Imports has agreed to purchase 10,000 cases of Australian wine...

    SPOT AND FORWARD RATES Arvin Australian Imports has agreed to purchase 10,000 cases of Australian wine for 4 million Australian dollars at today's spot rate. The firm's financial manager, Sarah Vintnor, has noted the following current spot and forward rates: U.S. Dollar/Australian Dollar Australian Dollar/U.S. Dollar Spot 0.7654 1.3065 30-day forward 0.7634 1.3099 90-day forward 0.7622 1.3120 180-day forward 0.7599 1.3160 On the same day, Vintnor agrees to purchase 10,000 more cases of wine in 3 months at the same...

  • I need the forward rate calculate for all the options from 1 month to 24 months...

    I need the forward rate calculate for all the options from 1 month to 24 months like the above IASk On Aussie Dollar orward. Use the following spot and forward bid-ask rates or the US. dollar/Australian dollar (US$ A$1.00) exchange rate tro a. What is the midrate for each maturity? b. What is the annual forward premium for all maturities? c. Which maturities have the smallest and largest forward premiums? (Click on the icon to import the table into a...

  • 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/£...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT