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a) The following information is provided by Aurora Borealis Advisors. There are several different exchange rate circumstances for currency transaction. Currency Exchange Rates Value of
a) The following information is provided by Aurora Borealis Advisors. There are several different exchange rate circumstances for currency transaction. Currency Exchange Rates Value of Malaysian Maturity Ringgit (RM) in Australian Dollar (AUD) Value of Jordanian Dinar (JOD) in Malaysian Ringgit (RM) Bid Ask Bid Ask 0.4000 0.5000 4.2000 4.3000 Spot 30-day 20/10 60-day 15/25 Three-Month Interest Rates (Percent) Malaysia 3.0 Australia 3.5 Jordan 2.5 You are required to show your workings based on the given information of the currency exchange rates. (9 marks) i) Calculate the outright rates of RM per AUD at 30 days. ii) Compute 2-month forward bid outright RM per JOD. iii) Compute the percentage spread on the spot AUD per JOD quotation. iv) Determine bid and ask rates of AUD per JOD in 90 days. v) Calculate 3-month annualized premium (discount) of AUD in JOD. 10/20 25/15 a) The following information is provided by Aurora Borealis Advisors. There are several different exchange rate circumstances for currency transaction. Currency Exchange Rates Value of Malaysian Maturity Ringgit (RM) in Australian Dollar (AUD) Value of Jordanian Dinar (JOD) in Malaysian Ringgit (RM) Bid Ask Bid Ask 0.4000 0.5000 4.2000 4.3000 Spot 30-day 20/10 60-day 15/25 Three-Month Interest Rates (Percent) Malaysia 3.0 Australia 3.5 Jordan 2.5 You are required to show your workings based on the given information of the currency exchange rates. (9 marks) i) Calculate the outright rates of RM per AUD at 30 days. ii) Compute 2-month forward bid outright RM per JOD. iii) Compute the percentage spread on the spot AUD per JOD quotation. iv) Determine bid and ask rates of AUD per JOD in 90 days. v) Calculate 3-month annualized premium (discount) of AUD in JOD. 10/20 25/15
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