20. Given the following information, what are the INR/SGD cross-currency bid-ask quotations? 21. Assume the following information. Given this information, is triangular arbitrage possible? If so, explain the steps that would reflect triangular arbitrage, and compute the profit from this strategy if you had ASI million to use. What market forces would occur to eliminate any further possibilities of triangular arbitrage? 22. The table below lists the TRY/USD forward rates for different maturities. Using the data in the table, calculate F, (TRYUSD), F+(TRY/USD), F(TRYASD), and Fm (TRY/USD), if the spot exchange rate is S(TRY/USD) = 18.6183. (Please use the average of the bid and ask forward points to compute the forward rates.) 22. The table below lists the TRY/USD forward rates for different maturities. Using the data in the table, calculate F, (TRY/USD), if the spot exchange rate is S(TRY/USD)= 18.6183. (Please use the average of the bid and ask forward points to compute the forward rates.) 23. Given the forward rates in the above table, what is the annualized forward premium on the Turkish lira for the 3month forward rate? 24. The U.S. dollar suddenly changes in value against the euro moving from an exchange rate of $0.8909/ euro to $0.8709/ euro. Thus, the dollar has by a. appreciated; 2.30% b. depreciated; 2.30% c. appreciated; 2.24% d. depreciated; 2.24% 25. The current spot exchange rate is $1.95/ and the threemonth forward rate is $1.90. On the basis of your analysis of the exchange rate, you are pretty confident that the spot exchange rate will be $1.92/ in three months. Assume that 24. The U.S. dollar suddenly changes in value against the euro moving from an exchange rate of $0.8909/ euro to $0.8709/ curo. Thus, the dollar has by a. appreciated; 2.30% b. depreciated; 2.30% c. appreciated; 2.24% d. depreciated; 2.24% 25. The current spot exchange rate is $1.95/ and the threemonth forward rate is $1.90. On the basis of your analysis of the exchange rate, you are pretty confident that the spot exchange rate will be $1.92 in three months. Assume that you would like to buy or sell 1,000,000. a. What actions would you need to speculate in the forward market? What is the expected dollar profit from the speculations? b. What would your speculative profit be is the spot rate actually turns out to be $1.86 ? 26. Consider the following information: Given this information, what would be the yield (percentage return) to an Australian investor who used covered interest arbitrage? (Assume the investor invests ASI million.) What market forces would occur to climinate any further possibilities of covered interest arbitrage? Page 2 of 9