Question

^{A) You are given the following exchange rates: SF in NY: $1.1259-71}

^{$ in Zurich: SF0.8861-68}

^{What is the percent spread for SF in NY?}

^{a.   0.1060%}

^{b.   0.1065%}

^{c.   0.0789%}

^{d.   0.0790%}

^{B) As at 27 December 2012, the exchange rate between Euro and US dollar is 0.75 € per US$. Exchange rate between US$ and Swiss Franc is 1.09 US$ per Swiss Franc. Find the exchange rate between € and Swiss Franc.}

^{a.   €0.8175/SF}

^{b.   €1.4533/SF}

^{c.   SF0.6881/€}

^{d.   SF1.4533/€}

^{C) A bank is quoting the following exchange rates against the dollar for the Swiss franc and the Australian dollar:}

^{SF/$ = SF 1.5960/$}

^{A$/$ = A$ 1.7225/$}

^{what is the quote between Australian dollar and SF if there is no arbitrage opportunity?}

^{a.   A$2.7491/SF}

^{b.   SF2.7491/A$}

^{c.   A$1.0793/SF}

^{d.   A$0.9266/SF}

^{D) If the ninety-day forward exchange rate is ¥109.50/$ and the spot rate is ¥109.38/$, What is the annualized forward discount or premium on US dollar?}

^{a.   0.1097% forward premium}

^{b.   0.4389% forward premium}

^{c.   0.1096% forward premium}

^{d.   -0.4384% forward discount}

Answer 1