3. Compute the bid/ask percentage spread for Mexican peso retail transactions in which the ask rate is $.0806 and the bid rate is $.0777.
3. Compute the bid/ask percentage spread for Mexican peso retail transactions in which the ask rate...
The bid-ask spread for CAD and USD is 1.2535-65. The bid-ask spread for SGD and USD is 1.3612-48. Both are indirect quotes. What is the no arbitrage cross rate for SGD/CAD?
2. Below are bank bid and ask mates Bid rate of S0.018554/Philippine Peso Ask rate of $0.019614/Philippine Peso Bid rate of S0.031160/Taiwan New Dollar Ask rate of $0.033160/Taiwan New Dollar Bid rate of $0.008951/Japanese Yen Ask rate of $0.009251/Japanese Yen You start a trip to the Philippines with $1.500 in cash and convert that amount into Philippine Pesos (PHP). You are able to pay everything by credit card, so you convert your Philippine Pesos back into U.S. dollars when you...
3. Questions and Problems 3 When the equilibrium exchange rate rises from, say, 10 cents for one Mexican peso to 12 cents for one Mexican peso, Americans must now pay 8,90,12,10 to buy one peso. It is said that the dollar has depreciated in relation to the Mexican peso. At the same time, the peso has depreciated in relation to the U.S. dollar, as it now takes appreciated instead of to buy one dollar. 8.33,T00,9.83,10 10, 9.83,8.33,100 pesos Grade It...
3. Covered Interest Arbitrage. Assume the following information: Spot rate of Mexican peso = $ .100 1-year Forward rate of Mexican peso = $ .098 Mexican interest rate = 8% US. interest rate =5% Show how to identify any arbitrage opportunity based on the Interest Rate Parity (IRP). What is your strategy to achieve your profit? What is your arbitrage profit per $1,000,000 (CIA) ?
A bank quotes a bid price of $0.0093 per yen and an ask price of $0.00936 per yen for its wholesale customers. What is the bid/ask spread in percentage terms? Bid/ask spread = Ask rate − Bid rate Ask rate = 0.00936 − 0.0093 0.00936 = 0.641% = 0.00641 Part 2 If you convert $29,000,000 to yen and then back to dollars, what is your total round-trip cost (in $)?
The price for which the owner is willing to sell the security is called the: bid price spread ask price limit price
Assume a bank's bid rate for the Danish kroner (DKK) is $0.1875, while its ask rate is $0.1895. Assume you convert $1,000 to Danish kroner to take on your trip to Denmark. Immediately after conversion, a family emergency arises, and you are unable to go on your trip. Thus, you convert the Danish kroner back to dollars. What is the bank's bid/ask percentage spread?
Today’s spot rate of the Mexican peso is $.10. Assume that purchasing power parity holds. The U.S. inflation rate over this year is expected to be 7 percent, while the Mexican inflation over this year is expected to be 3 percent. Carolina Co. plans to import from Mexico and will need 20 million Mexican pesos in one year. Determine the expected amount of dollars to be paid by the Carolina Co. for the pesos in one year.
Given these two exchange rates, $1 = 12.349 Mexican pesos and $1-€0.7684, compute the cross- rate between the Mexican peso and the euro. State this exchange rate in pesos and in euros. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Cross rate of 1 peso Cross rate of 1 euro pesos
For Stock A, which is traded in a dealer market, the bid-ask spread is 1 dollar. A buy-market order is executed at 60 dollars. A. Will a limit-sell order of 60.5 be executed? If so, in what price? B. Will a limit-buy order of 59.5 be execeuted? If so, in what price? C. Will a market-sell order be executed? If so, in what price?