Question
As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on Australian dollars. Current market rates are: Spot
As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on Australian dollars. Current market rates are:
| Spot | 30-day |
| 101.37-85/U.S.$1 | 15-13 |
| A$1.2924-44/U.S.$1 | 20-26 |
a. What bid and ask yen cross rates would you quote on spot Australian dollars?
b. What outright yen cross rates would you quote on 30-day forward Australian dollars?
c. What is the forward premium or discount on buying 30-day Australian dollars against yen delivery?
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Financial Management Principles And Practice
Authors: Timothy Gallagher
7th Edition
0996095462, 978-0996095464
