Exchange rate is the price of one currency expressed in ferms of another currency and it is determined by the supply and demand of each country's currency. Currencies can be traded in the spot or forward market. In most currency markets. many currency pairs are inactively traded and so their exchange rate can be determined through their relation relative to a widely traded third currency. a) ABC Bank has the following quotations for the US Dollar and Indonesian Rupioh. The following information provided several different exchange rate circumstances for currency transaction. You ore required to show your workings based on the given information of the currency exchange rates. (9 marks) i) 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. iii) Determine the annualized premium (discount) on the three months forward bid rates for MYR/USD and MYR/DR 100 . iv) Compute the percentage bid-offer spread on the MYR/USD and MYR/IDR 100 spot rates. v) Determine the one month forward cross rate for IDR/USD. Also answer the following questions based on the rubric. (16 marks) b) The foreign exchange market is a global decentralized market that provides the physical and institutional structure through which currencies are traded. It assists international trade and investments by enabling currency conversion. As we know that exchange rates vary because of numerous reasons, Discuss in detail four (4) common theories that elucidate exchange rates movements. INDIVIDUAL ASSIGNMENT (25\%) SUBMISSION DATE: WEEK 9,28 October 2022, FRIDAY, 6PM. MODE OF SUBMISSION: SOFTCOPY VIA TURNITIN \& HARDCOPY AT DESIGNATED DROPBOX LEVEL 2, BLOCK E. Exchange rate is the price of one cumency expressed in ferms of another currency and it is determined by the supply and demand of each country's currency. Cumencies can be traded in the spot or forward market. In most currency markets. many currency pairs are inoctively troded and so their exchange rate can be) determined through their relation relative to a widely traded third currency. a) ABC Bank has the following quotations for the US Dollar and Indonesian Rupiah. The folowing information provided several different exchange rate circumstances for currency transoction. You are required to show your workings based on the given information of the currency exchange rates. (9 marks) i) Calculate the forward outright bid and offer rates for the above quotations. D) Determine the amount in MYR you would exchange with 1DR700.000 today. -i) Determine the annualized premium (discount) on the three months forward bid rates for MYR/USD and MYR/DRIDO. iv) Compute the percentoge bid-offer spreod on the MYR/USD and MYR/1DR 100 spot rates: v) Determine the one month forward cross rate for IDR/USD. Also answer the following questions based on the rubric. (16 maris) b) The foreign exchange market is a global decentrolzed market that provides the physical and instifutional structure through which cunrencies are traded, It assists international trade and investments by enabling currency conversion. As we know that exchange rates vary because of numetous reasons. Discuss in detail four (4). common theories that elucidate exchange rates movements