21-)

Given the following exchange rates, what arbitrage profit is available if you have $1 million? 129.87/$, 1.1226/$, 115.74/

Select one:

a. $259,652

b. $460

c. -$460

d. $878

30-)

The current U.S. dollar-yen spot rate is 125/$. If the 90-day forward exchange rate is 127 /$ then the yen is selling at a per annum forward ________ of ________.

Select one:

a. premium; 1.57%

b. discount; 6.30%

c. premium; 6.30%

d. discount; 1.57%

33-)

Sarah bought a 3-month British pound futures contract for $1.4400/ only to see the dollar appreciate to a value of $1.4250/ at which time she sold the pound futures. If each pound futures contract is for an amount of 62,500, how much money did Sarah gain or lose from her speculation with pound futures?

Select one:

a. 937.50 gain

b. 937.50 loss

c. $937.50 loss

d. $937.50 gain