1. You have a long position in one futures contract at 32.50/$. (The contractual size of one dollar contract is $1,000). Your margin account currently has a balance of 2,000 and the maintenance level of 1,000. The next three days' settlement prices are 32.65/$, 32.80/$, and 33.00/$. Find the changes in the margin account from daily marking-to-market and find the result in the balance of the margin account after the third day.

2. Suppose the spot ask exchange rate, Sa(/), is 46.10 and the spot bid exchange rate, Sb(|), is 46.05. If you were to buy British pounds with 10,000,000 and then sell them five minutes later, how much of your 10,000,000 would be gain or lost by the bid-ask spread?

3. If the / bid and ask prices are 39.20/ and 39.34/, respectively, the corresponding / bid and ask prices are

4. Suppose you have 1,000,000 and wish to exchange to Japanese yen. The baht-euro exchange rate is quoted as 39.25 = 1.00 and the baht-yen exchange rate is quoted at 1.00 = 3.24. What is cross exchange rate? How many yen will the customer get?(4 marks)

5. Consider a trader who takes a long position in a six-month forward contract on the US dollar. The forward rate is 33.30 = $1.00; the contract size is 62,500. At the maturity of the contract the spot exchange rate is 32.55 = $1.00.What is the loss or gain the trader has?

6. Assume that a bank's bid rate on Swiss francs is Swiss francs 36.52 and its ask rate is 36.75. Its bid-ask percentage spread is

7. Assume that the bank's bid quote of Australian dollar is 23.45 and ask price is 23.56. What is the amount of Australian dollar that you need to purchase 100,000?

8. The 90-day forward rate is 40.12 per euro, while the current spot rate is 40.05 per euro. What is the annualized forward premium or discount of the euro?

9. Your company expects to receive 5,000,000 Japanese yen 60 days from now. You decide to selling Japanese yen forward. The current spot rate is .30 per yen, while the forward rate is .36 per yen. You expect the spot rate in 60 days to be .32 per yen. How many baht will you receive for the 5,000,000 yen 60 days from now?

10. From the currency quotation below, find bid and ask cross exchange rates of EUR/NZD

	Bid	Ask
GBP/EUR	0.8515	0.8545
USD/GBP	1.3590	1.3605
NZD/GBP	1.9600	1.9609