Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Data from the CMC Market Trading platform taken on March 3, 2022, shows the following exchange rate values. Currency Pair Bank Bid Bank Ask AUD/EUR

Data from the CMC Market Trading platform taken on March 3, 2022, shows the following exchange rate values.

Currency Pair

Bank Bid

Bank Ask

AUD/EUR

0.65573

0.65609

HKD/EUR

0.115088

0.115099

USD/ JPY

115.479

115.486

EUR/ USD

1.11191

1.11198

NZD/SGD

0.91873

0.91903

USD/NZD

1.47388

1.47421

NZD/EUR

0.61004

0.61021

Using these quotations, calculate the following: a. Calculate the bid/ask spread percentage for the Hong Kong

b. Calculate the bank bid and the bank ask rate for HongKong dollars in AUD (HKD/AUD).

c. Calculate the bank bid and ask rate for the New Zealand dollar in Japanese Yen(NZD/JPY).

d. Restate the AUD/EUR bid and ask rates if the EUR appreciates by 3%.

e. Assume the JPY appreciates by 2% against the USD, that is, JPY/USD increases by 2%. Calculate the bank bid, and the bank ask cross rate for the EUR in Japanese Yen (EUR/JPY) AFTER the JPY appreciation.

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

The Future Of Real Estate Early Warning Realtors

Authors: Anya Bartholomew

1st Edition

1975711149, 978-1975711146

More Books

Students also viewed these Finance questions

Question

3-23. Specific purpose:

Answered: 1 week ago

Question

What will ongoing support to teachers look like?

Answered: 1 week ago

Question

Are layers of support identified for students who struggle?

Answered: 1 week ago