Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Amy has a small company is engaged in exporting products to America and it based in AU. Now you are the customer of AB Bank

Amy has a small company is engaged in exporting products to America and it based in AU. Now you are the customer of AB Bank which has given the following quotes between US dollar and AU dollar. For Spot: BID price is 0.7346USD to 1 AUD; the ask price is 0.7348USD= 1AUD. for 3 month forward: the BID is 0.7349 USD=1AUD and ask price is 0.7352USD=1AUD. 6 month forward for BID is 0.7353USD=1AUD and 0.7357USD=1AUD for ask price. Is these direct or indirect quotes from perspective, and if it is direct quotes, could you convert it into indirect quotes; if it is indirect convert into direct.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Microeconomics

Authors: Glenn Hubbard, Anthony O'Brien

7th Edition

0134737504, 978-0134737508

More Books

Students also viewed these Finance questions