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need help You are a foreign exchange dealer. You see the following quote on your Bloomberg screen: a.The spot exchange rate of the Swedish krona
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You are a foreign exchange dealer. You see the following quote on your Bloomberg screen: a.The spot exchange rate of the Swedish krona is equal to 5.7 SKr per U.S. dollar. The three- month interest rates are 12% in SKr and 8% in dollars. What is the three-month forward exchange rate that you should quote? b.ln the language of currency traders would the Swedish krona be considered "strong or weak" relative to the U.S. dollar? Please discuss with at least 2 sentences explaining what strong and weak refers to c.Calculate the annualized discount or premium on the dollar relative to the krona. d.After a careful look at your screen, you discover that the spot exchange rate is really 5.7000- 5.7015. The 12-month interest rates are 12.25-12.5% in SKr and 8.25-8.5% in US dollars. What should be the bid-ask quote on the one-year forward SKr/S rate? e A Swedish exporting firm expects to be paid $1 ilion in three months. Please simulate the SKr value of this payment if in three months, the spot exchange rate is equal to SKr/$ 5 and also if it was equal to SKr/$-6. What would be the value of this payment if the firm hadStep by Step Solution
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