1. Direct ask is the reciprocal of indirect bid. True or False

2. See Photo

3. Direct bid is the reciprocal of indirect ask. True or False

4. See Photo

5. A speculator in New York wants to take a $10,000 position in the euro. He faves these bid-ask prices:

6. The Euro-Dollar exchange rate is $1.25 = Euro 1.00 and the dollar-yen exchange rate is Yen 100= $1.00. What is the euro-yen cross rate?

7. When you hear on the newa that euro-pound is going down, _ is getting weaker.

8. See Photo

1 pts Question 1 Direct ask is the reciprocal of indirect bid. O True False Question 2 1 pts You are a U.S.-based treasurer with $1,000,000 to invest. The euro-dollar exchange rate is quoted as $1.25 = 1.00 and the pound-dollar exchange rate is quoted as $1.35 = 1.00. If a bank quotes you a cross rate of 1.00 = 1.05, how much money can an astute trader make? No arbitrage profits exist $134,000.00 O $27,777.78 $28,571.43 O $18,165.78 Question 3 1 pts Direct bid is the reciprocal of indirect ask. True False Question 4 1 pts You are a U.S.-based treasurer with $1,000,000 to invest. The euro-dollar exchange rate is quoted as $1.25 = 1.00 and the pound-dollar exchange rate is qubted as $1.35 = 1.00. If a bank quotes you a cross rate of 1.00 = 1.05, the intrinsic value for the cross rate is O 1.00 = 0.9259 O 1.00 = 0.8800 O 1.00 = 1.6875 0 1.00 = 1.2273 0 1.00 = 1.0800 Question 5 1 pts A speculator in New York wants to take a $10,000 position in the euro. He faces these bid-ask prices: Bid Ask S($ per 1) 1.1125 - 05 s( per $1) 0.8985 - 04 20 O $11,130 $8,985 ara $8.989 O $11,125 Question 6 1 pts The euro-dollar exchange rate is $1.25 = 1.00 and the dollar-yen exchange rate is 100 = $1.00. What is the euro-yen cross rate? O 1.00 = 125 0.8 = 1 O 1.00 = 480 D Question 7 1 pts When you hear on the news that Euro-Pound is going down, is getting weaker. Pound Euro Question 8 1 pts You are a U.S.-based treasurer with $1,000,000 to invest. The euro-dollar exchange rate is quoted as $1.25 = 1.00 and the pound-dollar exchange rate is qubted as $1.35 = 1.00. If a bank quotes you a cross rate of 1.00 = 1.05, you should Sell Euro () to buy GBP () Sell GBP () and buy USD ($) O Sell USD ($) and buy Euro () O Sell GBP () and buy Euro () 1 pts Question 1 Direct ask is the reciprocal of indirect bid. O True False Question 2 1 pts You are a U.S.-based treasurer with $1,000,000 to invest. The euro-dollar exchange rate is quoted as $1.25 = 1.00 and the pound-dollar exchange rate is quoted as $1.35 = 1.00. If a bank quotes you a cross rate of 1.00 = 1.05, how much money can an astute trader make? No arbitrage profits exist $134,000.00 O $27,777.78 $28,571.43 O $18,165.78 Question 3 1 pts Direct bid is the reciprocal of indirect ask. True False Question 4 1 pts You are a U.S.-based treasurer with $1,000,000 to invest. The euro-dollar exchange rate is quoted as $1.25 = 1.00 and the pound-dollar exchange rate is qubted as $1.35 = 1.00. If a bank quotes you a cross rate of 1.00 = 1.05, the intrinsic value for the cross rate is O 1.00 = 0.9259 O 1.00 = 0.8800 O 1.00 = 1.6875 0 1.00 = 1.2273 0 1.00 = 1.0800 Question 5 1 pts A speculator in New York wants to take a $10,000 position in the euro. He faces these bid-ask prices: Bid Ask S($ per 1) 1.1125 - 05 s( per $1) 0.8985 - 04 20 O $11,130 $8,985 ara $8.989 O $11,125 Question 6 1 pts The euro-dollar exchange rate is $1.25 = 1.00 and the dollar-yen exchange rate is 100 = $1.00. What is the euro-yen cross rate? O 1.00 = 125 0.8 = 1 O 1.00 = 480 D Question 7 1 pts When you hear on the news that Euro-Pound is going down, is getting weaker. Pound Euro Question 8 1 pts You are a U.S.-based treasurer with $1,000,000 to invest. The euro-dollar exchange rate is quoted as $1.25 = 1.00 and the pound-dollar exchange rate is qubted as $1.35 = 1.00. If a bank quotes you a cross rate of 1.00 = 1.05, you should Sell Euro () to buy GBP () Sell GBP () and buy USD ($) O Sell USD ($) and buy Euro () O Sell GBP () and buy Euro ()