Homework Answers
1.
Option A
=10000000/1.89*1.88-10000000
=-52910.05291
2.
Option E
1 Euro=1.40 $
1 $=110 Yen
1 Euro=1.40*110 Yen or 154 Yen
Add Answer to:
22 The spot ask USD/GBP exchange rate is $1.89 - £100. The spot bid USD/GBP exchange rate is $1.88 - £100. What is the...
Suppose the spot ask exchange rate, sa ($£), is $1.90 = £1.00 and the spot bid...
Suppose the spot ask exchange rate, sa ($£), is $1.90 = £1.00 and the spot bid exchange rate, S($1£), is $1.89 = £1.00. If you were to buy $10,000,000 worth of British pounds and then sell them five minutes later, how much of your $10,000,000 would be "eaten" by the bid-ask spread? Multiple Choice O $1,000,000 O $52910 $52,910 O $100,000 $52,632
Question 5: The spot ask exchange rate is $1.90 = £1.00 and the spot bid exchange...
Question 5: The spot ask exchange rate is $1.90 = £1.00 and the spot bid exchange rate is $1.89 = £1.00. If you wan to buy $10,000,000 worth of £, and ten minutes later, you want to sell them. How much money would be lost due to the bid-ask spread? (8 points)
19 Suppose that the GBP is pegged to gold at £20 per ounce. The USD is...
19 Suppose that the GBP is pegged to gold at £20 per ounce. The USD is pegged to gold at $35 per ounce. This implies an exchange rate of $175/18. How might an Investor take advantage of situation if the current market exchange rate is $1.60/1£? Multiple Choice points 02-50-30 0 Buy gold at $35 per ounce. Convert the gold to $200 at $20 per ounce. Exchange the €200 for dollars at the current rate of $160 per pound 0...
Country USD Nominal Rate 2.5% GBP 3.5% The above table contains nominal interest rate information for the United States...
Country USD Nominal Rate 2.5% GBP 3.5% The above table contains nominal interest rate information for the United States and Great Britain. Assume the current U.S. dollar-British spot rate is GBP0.6134/USD. what is the approximate forward exchange rate for delivery 360 days from now? [Assume the USD is the home currency (currency of interest)] 0 GBP 0.6195/USD GBP 0.6073/USD USD 0.6195/GBP 0 USD0.6073/GBP
23) Country Switzerland (Franc) CHF Euro € USD equivalent BID ASK 0.7648 0.7652 1.4000 1.4200 What...
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...
The US dollar (USD) to Thai baht (THB) spot exchange rate was 100 USD = 3231.78...
The US dollar (USD) to Thai baht (THB) spot exchange rate was 100 USD = 3231.78 THB in September 2018. By January 2019 it had moved to 100 USD = 3118.74 THB. The 30-day forward rate then was 100 USD = 3198.70 THB. i. Calculate the appreciation / depreciation of the THB versus the USD. Did the THB appreciate or depreciate against the USD? ii. What was the interest rate differential between the two currencies in January 2019?
15 Suppose that the current exchange rate is €1.00 - $1.60. The indirect quote from the...
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...
QUESTION 18 The USD/CAD spot rate is USD 0.7500 - USD 0.7505. The 6-month forward points...
QUESTION 18 The USD/CAD spot rate is USD 0.7500 - USD 0.7505. The 6-month forward points are 10-20. What is the outright 6-month forward quotation? 0 USD 0.7510 - USD 0.7520 0 USD 0.7490 - USD 0.7485 0 USD 0.7510 - USD 0.7525 None of the answers is correct. QUESTION 19 Assume you are a French investor. You see that stock for British Airways has a bid price of EUR 36 and an ask price of EUR 36.5 on the...
QUESTION 21 Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is V115...
QUESTION 21 Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is V115 $1. Rinaldo finds out that the rate quoted in New York at 10:00 a.m. (3:00 p.m. London time) is V135 = $1. Rinaldo decides to buy yen in New York and sell it in London. Rinaldo is engaging in currency swapping. currency speculation carry trade. arbitrage. 1 points Save Answer QUESTION 22 Assume you are an Israeli investor, the symbol for the Israeli currency,...
The one-year interest rate in the U.K. is 5.0 percent. The spot exchange rate is $1.40/£...
The one-year interest rate in the U.K. is 5.0 percent. The spot exchange rate is $1.40/£ and the one-year forward exchange rate is $1.35/£. Assuming interest rate parity, the one-year U.S. interest rate is: Multiple Choice • None of the options. 0 0 0 0
Suppose the spot ask exchange rate, sa ($£), is $1.90 = £1.00 and the spot bid exchange rate, S($1£), is $1.89 = £1.00. If you were to buy $10,000,000 worth of British pounds and then sell them five minutes later, how much of your $10,000,000 would be "eaten" by the bid-ask spread? Multiple Choice O $1,000,000 O $52910 $52,910 O $100,000 $52,632
Question 5: The spot ask exchange rate is $1.90 = £1.00 and the spot bid exchange rate is $1.89 = £1.00. If you wan to buy $10,000,000 worth of £, and ten minutes later, you want to sell them. How much money would be lost due to the bid-ask spread? (8 points)
19 Suppose that the GBP is pegged to gold at £20 per ounce. The USD is pegged to gold at $35 per ounce. This implies an exchange rate of $175/18. How might an Investor take advantage of situation if the current market exchange rate is $1.60/1£? Multiple Choice points 02-50-30 0 Buy gold at $35 per ounce. Convert the gold to $200 at $20 per ounce. Exchange the €200 for dollars at the current rate of $160 per pound 0...
Country USD Nominal Rate 2.5% GBP 3.5% The above table contains nominal interest rate information for the United States and Great Britain. Assume the current U.S. dollar-British spot rate is GBP0.6134/USD. what is the approximate forward exchange rate for delivery 360 days from now? [Assume the USD is the home currency (currency of interest)] 0 GBP 0.6195/USD GBP 0.6073/USD USD 0.6195/GBP 0 USD0.6073/GBP
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...
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...
QUESTION 18 The USD/CAD spot rate is USD 0.7500 - USD 0.7505. The 6-month forward points are 10-20. What is the outright 6-month forward quotation? 0 USD 0.7510 - USD 0.7520 0 USD 0.7490 - USD 0.7485 0 USD 0.7510 - USD 0.7525 None of the answers is correct. QUESTION 19 Assume you are a French investor. You see that stock for British Airways has a bid price of EUR 36 and an ask price of EUR 36.5 on the...
QUESTION 21 Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is V115 $1. Rinaldo finds out that the rate quoted in New York at 10:00 a.m. (3:00 p.m. London time) is V135 = $1. Rinaldo decides to buy yen in New York and sell it in London. Rinaldo is engaging in currency swapping. currency speculation carry trade. arbitrage. 1 points Save Answer QUESTION 22 Assume you are an Israeli investor, the symbol for the Israeli currency,...
The one-year interest rate in the U.K. is 5.0 percent. The spot exchange rate is $1.40/£ and the one-year forward exchange rate is $1.35/£. Assuming interest rate parity, the one-year U.S. interest rate is: Multiple Choice • None of the options. 0 0 0 0
Most questions answered within 3 hours.
-
How can I solve the following using a TI83
Claim: Most adults would erase all of...
asked 11 minutes ago -
Analysis of 3-ethyl-3-buten-2-ol gave C, 72.13%; H, 11.92%.
Calculate the percent deviation of these results from...
asked 8 minutes ago -
Which VALS segment is most likely to have a top of the line
brand new (2015)...
asked 12 minutes ago -
Write a program to score the paper-rock-scissor game. Each of
two users types in either P,R...
asked 32 minutes ago -
Calculate the equillibrium constent K for a redox reaction that
has E°cell = -.98 V at...
asked 44 minutes ago -
A concave spherical mirror has a radius of curvature of
magnitude 19.6 cm.
(a) Find the...
asked 46 minutes ago -
3. draw a diagram of the magnetic field:
a. around a long straight wire with a...
asked 44 minutes ago -
If you titrated 30.0 mL of 0.1 M HCl with 0.1 M NaOH, indicate
the approximate...
asked 53 minutes ago -
NADH passes electrons into the electron transport chain. List
the carriers that would receive the electrons,...
asked 1 hour ago -
A cylindrical cable with a resistivity of 1.6x10-8 Ω·m and cross
sectional area of 3x10-5 m^2...
asked 1 hour ago -
True or False.
A consumer with convex preferences who is indifferent between
the bundles (5,2) and...
asked 1 hour ago -
A diamond's index of refraction for red light, 656 nm, is 2.410,
while that for blue...
asked 1 hour ago