Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 Value of Jordanian Dinar (JOD) in Malaysian Ringgit Maturity Ringgit (RM) in Australian Dollar (AUD) (RM) Bid Ask Bid Ask 4.3000 0.4000 0.5000 4.2000 Spot 30-day 20/10 10/20 60-day 15/25 25/15 + Three-Month Interest Rates (Percent) Malaysia Australia 3.5 Jordan 2.5 3.0 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. 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 Value of Jordanian Dinar (JOD) in Malaysian Ringgit Maturity Ringgit (RM) in Australian Dollar (AUD) (RM) Bid Ask Bid Ask 4.3000 0.4000 0.5000 4.2000 Spot 30-day 20/10 10/20 60-day 15/25 25/15 + Three-Month Interest Rates (Percent) Malaysia Australia 3.5 Jordan 2.5 3.0 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Final exam csc 2 0 1 Computer programming 1

Answered: 1 week ago