A London dealer bank’s current bid/ask quotes for the U.S. dollar are £0.7810/$ and £0.7990/$. If you want to buy $16,000,000 from that dealer, how many British pounds would you pay?
How would the NY branch of the London dealer bank in the above question quote its bid and ask prices if it wants to be consistent with the prices of its parent bank?
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A London dealer bank’s current bid/ask quotes for the U.S. dollar are £0.7810/$ and £0.7990/$. If...
1. A London dealer bank’s current bid/ask quotes for the U.S. dollar are £0.7720/$ and £0.7980/$. If you want to sell $12,000,000 to that dealer, how many british pounds would you receive? 2. A London dealer bank’s current bid/ask quotes for the U.S. dollar are £0.7720/$ and £0.7980/$. If you want to buy £16,000,000 from that dealer, how many dollars would you pay? 3. How would the NY branch of the London dealer bank in the above question quote its...
PLEASE HELP! A London dealer bank’s current bid/ask quotes for the U.S. dollar are £0.7720/$ and £0.7980/$. If you want to sell $12,000,000 to that dealer, how many dollars would you receive? A London dealer bank’s current bid/ask quotes for the U.S. dollar are £0.7720/$ and £0.7980/$. If you want to buy £16,000,000 from that dealer, how many British pounds would you pay? How would the NY branch of the London dealer bank in the above question...
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 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...
The following are quotes for several U.S. currency dealers. Dealer A B C D E Japanese yen 109.03 109.06 109.04 109.08 109.06 109.10 109.05 109.07 109.07 109.09 British pounds 1.3115 1.3119 1.3118 1.3120 1.3115 1.3118 1.3116 1.3117 1.3115 1.3118 Inter-dealer arbitrage 1 a. Is there an arbitrage opportunity in Japanese yen? If so, what exchanges should you make to take advantage of it? (Be specific about which dealer you would select, what currency you would buy from or sell to...
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 4 a. If the dealer’s spot market quotes for the Russian ruble are: 65.7120 65.7130, and the dealer’s 3-month forward quotes for the ruble are: 2003 2040, what are the dealer’s effective 3-month forward bid and ask prices for the...
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...
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...
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?
The following are quotes for several U.S. currency dealers. Dealer A B C D E Japanese yen 109.03 109.06 109.04 109.08 109.06 109.10 109.05 109.07 109.07 109.09 British pounds 1.3115 1.3119 1.3118 1.3120 1.3115 1.3118 1.3116 1.3117 1.3115 1.3118 Covered interest arbitrage (Inter-temporal) - assume that the highest bid and lowest ask are equal (i.e., that the bid-ask spread is zero) 9. Assume the interest rate of 1-year risk free debt denominated in US dollars is 2.57% and the interest...