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4*. As a foreign exchange trader at U.S. Bank, one of your customers would like a Canadian dollar (CAD) quote on euro (). Current
4*. As a foreign exchange trader at U.S. Bank, one of your customers would like a Canadian dollar (CAD) quote on euro (). Current market rates are: Spot CAD1.2974-99/$1 30-day 22-18 Rate Bid Ask 0.9215--85/$1 12-35 S(CAD/$) a. What bid and ask CAD cross rates would you quote on spot euro: S(CAD/)? S(/$) S(CAD/) b. What outright CAD cross rates would you quote on 30-day forward euro: F(CAD/)? F(CAD/$) F(/$) C. What is the forward premium or discount on buying 30-day against CAD delivery? F(CAD/)
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