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1. 2. 3. The United States and Great Britain are two of the largest trading blocs in the world. Over the past couple of years,
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The United States and Great Britain are two of the largest trading blocs in the world. Over the past couple of years, the USD/GBP exchange rate has diverged because of different growth paths. These are the exchange rates over the past two years: S2020 = USD 1.30/GBP S2021 - USD 1.40/GBP Based on this information, calculated the percentage change in the spot rate, assuming the GBP is the currency of interest. O +4% O-4% 0 -7.69% O +7.69% Calculate for forward differential in % (either premium or discount) on the SEK (SEK - Swedish Krona = currency of interest Spot rate=SEK 9.25/EUR 6-month forward rate = SEK 9.20/EUR O -1.08% O +1.09% 0 -1.09% +1.08% Eaton, an analyst for Barclay, receives the following CHF to USD quotes. Spot exchange rate: Bid rate CHF 1.0020/USD Ask rate CHF 1.0030/USD 6 months forward -10 to 15 Calculate outright quotes for bid and ask for the 6-month forward. O Forward bid - CHF 1.0010/USD, forward ask CHF 1.0015/USD Forward bid - CHF 1.0010/USD; forward ask CHF 1.0018/USD O Forward bid - CHF 1.1010/USD; forward ask = CHF 1.1218/USD Forward bid - CHF 1.0015/USD; forward ask = CHF 1.0010/USD 2.
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