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ABC Bank has the following quotations for the US Dollar and Indonesian Rupiah. The following information provided several different exchange rate circumstances for currency
ABC Bank has the following quotations for the US Dollar and Indonesian Rupiah. The following information provided several different exchange rate circumstances for currency transaction. Spot One month forward Three months forward Per Unit USD MYR4.1500/4.1548 20/76 62/25 100 Units IDR MYRO.0470/0.0520 90/50 10/22 You are required to show your workings based on the given information of the currency exchange rates. 1. Calculate the forward outright bid and offer rates for the above quotations. ii) Determine the amount in MYR you would exchange with IDR700,000 today. Determine the annualized premium (discount) on the three months forward bid rates for MYR/USD and MYR/IDR100. Determine the one month forward cross rate for IDR/USD. Compute the percentage bid-offer spread on the MYR/USD and MYR/IDR100 spot rates.
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