Determine if any arbitrage is possible for US Investor C) Bid Quote $1.60 Ask Quote $1.62 Spot ra...
11) (6 pts) World Nation Bank offers the following information (ignore bid/ask spreads: Spot rate on Euro 90 day forward rate on Euro Customers can borrow or deposit US dollars for 90 days at an annualized rate of 3.6% per year (0.9% per 90 days) Customers can borrow or deposit Euros for 90 days at a 1.2% per year (0.3% per 90 days) $1.118 (US$1.118/1EUR) $1.129 (US$1.129/1EUR) n annualized rate of Suppose a European investor has 100,000 Euros,if they deposit...
15 Suppose that the current exchange rate is €1.00 - $1.60. The indirect quote from the US. perspective is A) €0.6250 - $1.00 3) €1.50 - $1.00 €1.00 - $1.60 Dy none of the options 19) The bid price A) is the price that a dealer stands ready to pay B) is the price that a dealer stands ready to sell at. is the price that the dealer has just paid for something, his historical cost of the most recent...
23) Country Switzerland (Franc) CHF Euro € USD equivalent BID ASK 0.7648 0.7652 1.4000 1.4200 What is the ASK cross-exchange rate for Swiss Francs priced in euro? Hint: Find the price that a currency dealer will take in euro to sell Swiss francs. A) €0.5386/CHF B) €0.5466/CHF €0.5389/CHF D) €0.5463/CHF 24) 24) Suppose a bank customer with €1,000,000 wishes to trade out of euro and into Japanese yen. The dollar-curo exchange rate is quoted as $1.70 - €1.00 and the...
19 Suppose that the current exchange rate is 1.00 - $1.60. The indirect quote from the US. perspective is A) €0.6250 - $1.00 3) €1.60 - $1.00 E1.00 - $1.60. D) none of the options 19) The bid price Aj is the price that a dealer stands ready to pay s) is the price that a dealer stands ready to sell at. is the price that the dealer has just paid for something, his historical cost of the most recent...
a) Bid Price of New Zealand Dollar - JP Morgan Bank USD0.6533 and Well Fargo USD0.6503 Ask Price of New Zealand Dollar - JP Morgan Bank USD0.6563 and Well Fargo USD0.6523 Justify whether locational arbitrage is possible. If so, explain the steps involved in locational arbitrage, and estimate the profit from this arbitrage if you had USD1,000,000 to use. Discuss market forces factors that would occur to eliminate any further possibilities of locational arbitrage. (6 marks) b) Currency Pair Quoted...
1. John sold a call option on Euro for $.04 per unit. The strike price was $1.30, and the spot rate at the time the option was exercised was $1.32. Assume John bought the Euro from the market if the option was exercised. Also assume that there are 100,000 units in a Euro option. What was John’s net profit on the call option? Baylor Bank believes the New Zealand dollar will appreciate over the next 20 days from $.50 to...