ZuoTi.Pro
Question

QUESTION 9 The USD/CAD spot rate is USD 0.7500 - USD 0.7505. The 6-month forward points are 10-20. What is the outright 6-mon

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

Homework Answers

Answer #1

Ans USD 0.7510- USD 0.7525

Forward Quotation = Spot rate + Forward points
0.7500 + 0.0010
0.7510
Spot rate + Forward points
0.7505 + 0.0020
0.7525
0 0
Add a comment
Know the answer?
Add Answer to:
QUESTION 9 The USD/CAD spot rate is USD 0.7500 - USD 0.7505. The 6-month forward points...
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

  • QUESTION 18 The USD/CAD spot rate is USD 0.7500 - USD 0.7505. The 6-month forward points...

    QUESTION 18 The USD/CAD spot rate is USD 0.7500 - USD 0.7505. The 6-month forward points are 10-20. What is the outright 6-month forward quotation? 0 USD 0.7510 - USD 0.7520 0 USD 0.7490 - USD 0.7485 0 USD 0.7510 - USD 0.7525 None of the answers is correct. QUESTION 19 Assume you are a French investor. You see that stock for British Airways has a bid price of EUR 36 and an ask price of EUR 36.5 on the...

  • 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%

  • QUESTION 16 Suppose the spot rate is $1.0000 - $1.0005 per euro and 3-month forward points...

    QUESTION 16 Suppose the spot rate is $1.0000 - $1.0005 per euro and 3-month forward points are 5 and 15. The outright 3-month forward rates (bid and ask) are: 1.0005 - 1.0015 1.0500 - 1.2000 1.0005 - 1.0020 O None of the answers is correct.

  • On your dealer's screen you have the following quotations: Spot: CHF/USD 0.9140/0.9525 6 month Fo...

    On your dealer's screen you have the following quotations: Spot: CHF/USD 0.9140/0.9525 6 month Forward: 21/25 What is the 6 month outright forward quote on the Swiss Franc (CHF)? Using the BID quotation, find the annualised forward bid premium/ discount on the Swiss Franc (2 decimal places Answer as a percentage. Is the Swiss Franc selling at a premium or a discount? On your dealer's screen you have the following quotations: Spot: CHF/USD 0.9140/0.9525 6 month Forward: 21/25 What is...

  • points) Compute the forward premium for Spot rate Yen / USD - 85.25: Forward rate 3...

    points) Compute the forward premium for Spot rate Yen / USD - 85.25: Forward rate 3 months forward premium (or discount with the following months = 83.60 Ground your (6) Spot rate USD/EUR - 1.13; Forward rate 6 months - 1. o months LTO (round your answer to 2 de

  • QUESTION 1 A U.S. MNC will receive 1 million Indian rupees (INR) in one year. The...

    QUESTION 1 A U.S. MNC will receive 1 million Indian rupees (INR) in one year. The current spot rate is INR75 /USD and the one year forward rate is INR320/USD. The annual interest rate is 5 percent in India and 0 percent in the United States. The dollar amount the firm will receive using the forward hedge is USD 75,000,000 USD 13,333 USD 3,125. None of the answers is correct. QUESTION 2 Suppose that Boeing Corporation exported a Boeing 747...

  • QUESTION 1: Suppose that the current spot exchange rate is GBP1= €1.50 and the one-year forward...

    QUESTION 1: Suppose that the current spot exchange rate is GBP1= €1.50 and the one-year forward exchange rate is GBP1=€1.60. One-year interest rate is 5.4% in euros and 5.2% in pounds. If you have EUR1,000,000, what is the Covered Interest arbitrage profit in EUR? QUESTION 2: Suppose that the current spot exchange rate is GBP1= €1.50 and the one-year forward exchange rate is GBP1=€1.60. One-year interest rate is 5.4% in euros and 5.2% in pounds. If you conduct covered interest...

  • Problem 1 The following quotes are given for CAD/EUR: 1.4530/14535, 15-10, 22-14,30-20 for the spot, one...

    Problem 1 The following quotes are given for CAD/EUR: 1.4530/14535, 15-10, 22-14,30-20 for the spot, one month, three months and six months forward contracts. a) calculate the outright quotations and the spread for the spot rate and the 3-month forward contract. b) how is the spread related to time to maturity of the forward contract? c) determine the percentage premium/ discount of the Canadian dollar with respect to the euro for the 3 months ask rates (annualized).

  • Question Completion Status: QUESTION 15 The U.S. dollar is selling at a forward discount when what...

    Question Completion Status: QUESTION 15 The U.S. dollar is selling at a forward discount when what is taking place? The spot exchange rate is JPY120/USD currently and JPY130/USD after 30 days. The spot exchange rate is JPY120/USD currently and JPY100/USD after 30 days. The current spot exchange rate is JPY120/USD and the 30-day forward rate is JPY110/USD. The current spot exchange rate is JPY120/USD and the 30-day forward rate is JPY130/USD. QUESTION 16 Suppose the U.S. dollar-British pound exchange rate...

  • Consider the following spot rate curve: 6-month spot rate: 6%. 12-month spot rate: 11%. 18-month spot...

    Consider the following spot rate curve: 6-month spot rate: 6%. 12-month spot rate: 11%. 18-month spot rate: 14%. What is the forward rate for a 6-month zero coupon bond issued one year from today? Equivalently, the question asks for f12, where 1 time period consists of 6 months. Remember, like spot rates, forward rates are expressed as bond-equivalent yields.

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