Todays FT is quoting the following rates for the $HK against the Jul 29 Closing Change Bid offer Three months One year mid point on day spread Rate PA Rate PA HK$ 9 4432 0 0478 414 449 9 4759 1 4 9 5928 1 6 (a) Show how the 3 month and 12 month forward premia (in the column labelled PA) have been c...

German Tbill rate 400 Japanese Tbill rate 061 Current exchange rate 100 1542 Yen a Approx answe ...

Todays FT is quoting the following rates for the $HK against the . Jul 29 Closing Change

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Today’s FT is quoting the following rates for the $HK against the €.

Jul 29	Closing	Change	Bid/offer	Three months		One year
	mid-point	on day	spread	Rate	%PA	Rate	%PA
HK$	9.4432	+0.0478	414- 449	9.4759	-1.4	9.5928	-1.6

(a) Show how the 3-month and 12-month forward premia (in the column labelled “%PA”) have been computed.

(b) Compute the percentage bid-ask spread.

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Exchange Rates and International Finance

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Authors: Laurence Copeland

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Question Posted: Apr 03, 2019 11:51 AM

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Todays FT is quoting the following rates for the $HK against the . Jul 29 Closing Change

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Exchange Rates and International Finance

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