You observe that the spot price of the Swiss franc (CHF) is 1.14 USD/CHF, and that...
You observe that the spot price of the Swiss franc (CHF) is 1.14 USD/CHF, and that the 1 year forward rate is 1.07 USD/CHF. What is the percent forward premium? Enter answer as percent, accurate to 2 decimal places
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You observe that the spot price of the Swiss franc (CHF) is 1.14
USD/CHF, and that...
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...
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF)....
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF). Spot $ 0.8215 30-day forward $ 0.8530 90-day forward $ 0.8553 180-day forward $ 0.8600 a. Was the Swiss franc selling at a discount or premium in the forward market? Discount Premium b. What was the 30-day forward premium (or discount) percentage? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) c. What was the 90-day forward...
The follosing exchange rates are quoted for Japanese Yen (JPY), USD and Swiss Franc (CHF). Citibank...
The follosing exchange rates are quoted for Japanese Yen (JPY), USD and Swiss Franc (CHF). Citibank JPY 75.00/USD Dresdner Bank JPY 80.00/CHF 1. Calculate the price of the USD in terms of CHF. 2. Calculate the price of CHF in terms of USD.
The spot exchange rate between the US dollar and Swiss franc is $1.056 per franc. Swiss...
The spot exchange rate between the US dollar and Swiss franc is $1.056 per franc. Swiss banks pay 2.5 percent (annual) interest on their 180-day (6 months) deposits. On similar deposits, American banks pay 1.5 percent (annual.) Assuming that the 180-day forward rate of Swiss franc is $1.045, Do you see an arbitrage opportunity between these two countries? Briefly explain. If your answer were yes, how you would be able to take advantage from it and how much you would...
The forward price of the Swiss franc for delivery in 45 days is quoted as 1.25...
The forward price of the Swiss franc for delivery in 45 days is quoted as 1.25 CHF per USD. If you convert 1000 CHF into USD at this quote, how much USD will you get? Please write your answer in the format of 1100 or 700, leave the dollar sign out in your answer.
QUESTION 7 Suppose the price of a good is €10 and the original spot rate is...
QUESTION 7 Suppose the price of a good is €10 and the original spot rate is $1/€. Suppose the euro strengthens by 5%. The cost of the good in the United States would: Decrease from $10 to $9.50. Increase from $10 to $11. Increase from $10 to $10.50 Decrease from $10 to $9. QUESTION 11 Ain) occurs when two parties agree to exchange currency and execute the deal at some specific date in the future. The agreement is a contract...
High Open Low Prior settlement Last trade Change Volume Swiss Franc, USD per CHF, 125,000 CHF...
High Open Low Prior settlement Last trade Change Volume Swiss Franc, USD per CHF, 125,000 CHF 1.0781 1.0935 1.0770 1.0782 +0.0142 18,325 June 2015 1.0924 +0.0141 Sept. 2015 1.0899 1.0975 1.0899 1.0824 1.0965 17 The table above presents information available on a given date that is 1.20 months before the expiration for the June contract. Use the "Prior settlement" data to estimate the difference between short-term interest rates in Switzerland and the United States on that given date. US rate...
Assume the following information: Swiss one-year interest rate = 8%, U.S. one-year interest rate ...
Assume the following information: Swiss one-year interest rate = 8%, U.S. one-year interest rate = 4%, Franc spot rate = 0.11 USD/CHF, Franc forward rate = 0.08 USD/CHF. If interest rate parity exists, how do you take advantage of this opportunity? Explain.
6. Use binomial option pricing model for this question. Suppose the current spot rate for USD/CHF...
6. Use binomial option pricing model for this question. Suppose the current spot rate for USD/CHF is 0.7000. You need to find the one-year call option price of USD/CHF with the exercise price of 0.6800 USD/CHF. Assume that our future states will be either 0.7739 USD/CHF or 0.6332 USD/CHF 1) what are the payoffs of the call option (for both states)? 2) what is the hedge ratio of the call option? 3) Assume you can trade CHF denominated risk-free bond...
Country USD equivalent BID ASK 0.7648 0.7652 1.4000 1.4200 Switzerland (Franc) CHF Euro € What is...
Country USD equivalent BID ASK 0.7648 0.7652 1.4000 1.4200 Switzerland (Franc) CHF Euro € What is the BID cross-exchange rate for Swiss Francs priced in euro? Hint Find the price that a currency dealer will pay in euro to buy Swiss francs. O A €0.5463/CHF B. €0.5386/CHF OC. €0.5389/CHF OD. €0.5466/CHF
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...
QUESTION 7 Suppose the price of a good is €10 and the original spot rate is $1/€. Suppose the euro strengthens by 5%. The cost of the good in the United States would: Decrease from $10 to $9.50. Increase from $10 to $11. Increase from $10 to $10.50 Decrease from $10 to $9. QUESTION 11 Ain) occurs when two parties agree to exchange currency and execute the deal at some specific date in the future. The agreement is a contract...
High Open Low Prior settlement Last trade Change Volume Swiss Franc, USD per CHF, 125,000 CHF 1.0781 1.0935 1.0770 1.0782 +0.0142 18,325 June 2015 1.0924 +0.0141 Sept. 2015 1.0899 1.0975 1.0899 1.0824 1.0965 17 The table above presents information available on a given date that is 1.20 months before the expiration for the June contract. Use the "Prior settlement" data to estimate the difference between short-term interest rates in Switzerland and the United States on that given date. US rate...
6. Use binomial option pricing model for this question. Suppose the current spot rate for USD/CHF is 0.7000. You need to find the one-year call option price of USD/CHF with the exercise price of 0.6800 USD/CHF. Assume that our future states will be either 0.7739 USD/CHF or 0.6332 USD/CHF 1) what are the payoffs of the call option (for both states)? 2) what is the hedge ratio of the call option? 3) Assume you can trade CHF denominated risk-free bond...
Country USD equivalent BID ASK 0.7648 0.7652 1.4000 1.4200 Switzerland (Franc) CHF Euro € What is the BID cross-exchange rate for Swiss Francs priced in euro? Hint Find the price that a currency dealer will pay in euro to buy Swiss francs. O A €0.5463/CHF B. €0.5386/CHF OC. €0.5389/CHF OD. €0.5466/CHF
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