1- Suppose the AAA Bank offers the following Swiss Franc/dollar bid-ask quotations:

Spot 6 month

1.6472-82 182-170

What is the outright bid price for the dollar in terms of Swiss francs in the 6-month forward market (i.e., $/Swiss franc)?

2-Answer the questions for the Case: A local bank funding the offshore HGF loan (see enclosed case below, i.e., funding loan case). Note that the first number for the Eurocurrency interest rate data is the ask rate and the second number is the bid rate. 3-Given:

(1) Suppose bid-ask price for 6-month Euro FRA one year from now is 4-4.5%

(2) Bid-ask price for 6-month Euro-dollar FRA one year from now is 5-5.5%

(3) One year forward rate is $1.3-1.305/euro

(4) 18-month forward rate today is $1.3100-1.3205/Euro

Are they are arbitrage opportunities out there in the quotes? Show all work.

4-Compare and contrast the Eurodollar market and Dim Sum bond market