3. Cross-rate Bid-Ask Quotes. National Bank quotes the following rates for the Euro and Yen: EUR/NZD Bid: 0.5153 Ask: 0....
3. Cross-rate Bid-Ask Quotes. National Bank quotes the following rates for the Euro and Yen:
EUR/NZD Bid: 0.5153 Ask: 0.5168
JPY/NZD Bid: 81.14 Ask: 81.32
Calculate the bid/ask quotes for JPY/EUR.
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3. Cross-rate Bid-Ask Quotes. National Bank quotes the following rates for the Euro and Yen: EUR/NZD Bid: 0.5153 Ask: 0....
Cross rates The highest bid and lowest ask in the NY currency market for the listed...
Cross rates The highest bid and lowest ask in the NY currency market for the listed currencies: Australian dollar AUD/USD 0.7190 Chinese yuan USD/CNY 6.7473 Danish krone USD/DKK 6.5451 Euro EUR/USD 1.1415 Jamaican dollar USD/JMD 132.88 Japanese yen USD/JPY 109.55 New Zealand dollar NZD/USD 0.6839 West African franc USD/XOF 279.50 8a. What is the implied cross rate prices for exchanging euros and West African francs? Which currency should be the base currency in this cross rate? b. If a customer...
Part 2. Cross rates The highest bid and lowest ask in the NY currency market for...
Part 2. Cross rates The highest bid and lowest ask in the NY currency market for the listed currencies: Australian dollar AUD/USD 0.7190 Chinese yuan USD/CNY 6.7473 Danish krone USD/DKK 6.5451 Euro EUR/USD 1.1415 Jamaican dollar USD/JMD 132.88 Japanese yen USD/JPY 109.55 New Zealand dollar NZD/USD 0.6839 West African franc USD/XOF 279.50 1 a. What is the implied cross rate prices for exchanging euros and West African francs? Which currency should be the base currency in this cross rate? b....
Part 2. Cross rates The highest bid and lowest ask in the NY currency market for...
Part 2. Cross rates The highest bid and lowest ask in the NY currency market for the listed currencies: Australian dollar AUD/USD 0.7190 Chinese yuan USD/CNY 6.7473 Danish krone USD/DKK 6.5451 Euro EUR/USD 1.1415 Jamaican dollar USD/JMD 132.88 Japanese yen USD/JPY 109.55 New Zealand dollar NZD/USD 0.6839 West African franc USD/XOF 279.50 1 a. What is the implied cross rate for exchanging Australian dollars and New Zealand dollars? What is the base currency in this cross rate? b. If a...
A bank quotes a bid price of $0.0093 per yen and an ask price of $0.00936...
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 $)?
Angela has 1 million NZD and faces the following rates: EUR/USD=1.1110/12, USD/NZD=1.4505/09, EUR/NZD= 1.6136/1.6140. a) Can Angela make a profit by trading the three currencies? If so, how much profi...
Angela has 1 million NZD and faces the following rates: EUR/USD=1.1110/12, USD/NZD=1.4505/09, EUR/NZD= 1.6136/1.6140. a) Can Angela make a profit by trading the three currencies? If so, how much profits in terms of NZD can she make with her own fundsin one round? (Hint: choose the right bid or ask price for trading) b) If all traders on the spot market behave like Angela, what would happen to the spot rates of the three currencies and why? (Hint: the spread...
Consider the following rates Tere EUR JPY LBP/USD LBP JPY USD/JPY 0.009 a) Find the bid...
Consider the following rates Tere EUR JPY LBP/USD LBP JPY USD/JPY 0.009 a) Find the bid rate of LBP/EUR. (6 points) b) Find the ask rate of LBP/EUR. (9 points)
2. Below are bank bid and ask mates Bid rate of S0.018554/Philippine Peso Ask rate of...
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...
Suppose you observe the following quotes for EUR at two different banks. At Bank X, the...
Suppose you observe the following quotes for EUR at two different banks. At Bank X, the bid is USD 0.330 / EUR and the ask is USD 0.335 / EUR. At Bank Y, the bid is USD 0.315 / EUR and the ask is USD 0.320 / EUR. What is your gain if you use USD 1,000,000 to take advantage of this locational arbitrage opportunity? That is, how much will you end up with over and above the USD 1,000,000...
QUESTION 25 At Bank A, the yen-dollar exchange rate is JPY120/USD. At Bank B, the dollar-euro...
QUESTION 25 At Bank A, the yen-dollar exchange rate is JPY120/USD. At Bank B, the dollar-euro exchange rate is USD1/EUR. At Bank C, the yen-euro exchange rate is: JPY123/EUR. What is the net profit if a dealer starts with USD1,000,000? The dealer cannot make a profit. $24,390 $25,000 None of the answers is correct.
Canadian Dollar: Spot and Forward (C$/$) Euro: Spot and forward ($/€) Mid rates Bid Ask Mid...
Canadian Dollar: Spot and Forward (C$/$) Euro: Spot and forward ($/€) Mid rates Bid Ask Mid rates Bid Ask spot 1.2645 1.2639 1.2651 1.2390 1.2387 1.2393 Forward 3-week 23 27 19 15 3-month 135 128 155 146 7a. How much $100 will cost you in Canadian Dollar and Euro? (Hint: you are buying USD). 7b. What are 3-week and 3-month forward bid and ask rate for Canadian Dollar and Euro? 7c. Based on information above, what are the profit margin...
Consider the following rates Tere EUR JPY LBP/USD LBP JPY USD/JPY 0.009 a) Find the bid rate of LBP/EUR. (6 points) b) Find the ask rate of LBP/EUR. (9 points)
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...
QUESTION 25 At Bank A, the yen-dollar exchange rate is JPY120/USD. At Bank B, the dollar-euro exchange rate is USD1/EUR. At Bank C, the yen-euro exchange rate is: JPY123/EUR. What is the net profit if a dealer starts with USD1,000,000? The dealer cannot make a profit. $24,390 $25,000 None of the answers is correct.
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