The difference between the forward rate and the spot rate is called the
Question 2 options:
indirect quote. |
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direct quote. |
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forward premium or forward discount. |
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cross exchange rate. |
forward premium or forward discount.
the above should be answer..
because it is the premium or discount that changes the forward rate
The difference between the forward rate and the spot rate is called the Question 2 options:...
In 2010, the three largest foreign exchange markets based on daily volume are Question 9 options: London, Tokyo, and Zurich. New York, Tokyo, and Zurich. London, New York, and Singapore. The difference between the forward rate and the spot rate is called the Question 16 options: direct quote. forward premium or forward discount. cross exchange rate. indirect quote.
Suppose the one-year forward $7€ exchange rate is $1.9 per euro and the spot exchange rate is $1.6 per euro. What is the forward premium on euros (the forward discount on dollars)? The forward premium on euros is 18.8 percent. (Give your answer as a percentage with one decimal and do not forget a negative sign, if appropriate.) Given the above information, what is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits...
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...
Question 9 (1 point) Suppose that on January 1, 1987, the spot rate on the Dutch guilder was $0.39 and the 180day forward rate was $0.40. The difference between the spot and forward rates suggested that Question 9 options: a) the guilder had risen in relation to the dollar b) the inflation rate in the Netherlands was declining c) interest rates were higher in the U.S. than in the Netherlands d) the guilder was expected to fall in value relative...
Given that the spot rate is 1.5 euros per pound and the forward euro-pound exchange rate is 1.575 euros per pound calculate the forward premium discDunt on the British pound and indicate which of the two it is. Consider a Dutch investor with 1 000 euros to pace in a bank deposit in either the Netherlands or Great Britain. The one-year interest rate on bank deposits is 2% in Britain and 4.04% in the Netherlands. The one year forward euro-pound...
What is the difference between the Spot Exchange Market and the Forward Exchange Market? Who are the participants in the Forward Exchange Market and for what reason/purpose does each of these parties participate in the Forward Exchange Market?
What is the difference between the Spot Exchange Market and the Forward Exchange Market? Who are the participants in the Forward Exchange Market and for what reason/purpose does each of these parties engage in the Forward Exchange Market?
Suppose the one-year forward $1€ exchange rate is $1.7 per euro and the spot exchange rate is $1.8 per euro. What is the forward premium on euros (the forward discount on dollars)? The forward premium on euros is percent. (Give your answer as a percentage with one decimal and do not forget a negative sign, if appropriate.)
If the forward price is higher than the spot price then the currency is trading at a: Multiple Choice discount in the spot market. Whether the currency is selling at a premium or a discount in the spot or forward market depends on whether the exchange rate is quoted in American or European terms. premium in the spot market. discount in the forward market. premium in the forward market.
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...