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i) Calculate the one-month and three-month forward outright rates for the above quotations. ii) Compute the percentage bid-offer spread for the one-month forward MYR/RMB and
i) Calculate the one-month and three-month forward outright rates for the above quotations.
ii) Compute the percentage bid-offer spread for the one-month forward MYR/RMB and SGD/MYR.
Please show all working based on the information given.
Exchange rate is the price of one currency expressed in terms 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) The following information provided several different exchange rate circumstances for currency transaction
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