Question
On which rate would you deal in each of the problems below? Tell which currency you want to buy and sell and at what rate.
On which rate would you deal in each of the problems below? Tell which currency you want to buy and sell and at what rate.
a. (2 marks) You received Euro from the sale of goods exported to Germany. You now want to convert the proceeds back to US dollars. The market quote is: EUR 0.9820 / 0.9832
b. (2 marks) The US central bank is planning to raise interest rate next month. You expect the price of USD to rise against most of the foreign currencies. The market quote for Australian Dollar is: AUD 0.6592 / 0.6609
c. (3 marks) You will have to pay a JPY invoice in 2 months with USD. You want to fix the exchange rate today by using forward. You get a market quote of: Spot USD/JPY 144.41 / 144.55 2-month swap points -91.63 / -91.37
On which rate would you deal in each of the problems below? Tell which currency you want to buy and sell and at what rate. 2 a. (2 marks) You received Euro from the sale of goods exported to Germany. You now want to convert the proceeds back to US dollars. The market quote is: EUR 0.9820/0.9832 b. (2 marks) The US central bank is planning to raise interest rate next month. You expect the price of USD to rise against most of the foreign currencies. The market quote for Australian Dollar is: AUD 0.6592 / 0.6609 c. (3 marks) You will have to pay a JPY invoice in 2 months with USD. You want to fix the exchange rate today by using forward. You get a market quote of: Spot USD/JPY 144.41 / 144.55 2-month swap points 91.63/91.37 On which rate would you deal in each of the problems below? Tell which currency you want to buy and sell and at what rate. 2 a. (2 marks) You received Euro from the sale of goods exported to Germany. You now want to convert the proceeds back to US dollars. The market quote is: EUR 0.9820/0.9832 b. (2 marks) The US central bank is planning to raise interest rate next month. You expect the price of USD to rise against most of the foreign currencies. The market quote for Australian Dollar is: AUD 0.6592 / 0.6609 c. (3 marks) You will have to pay a JPY invoice in 2 months with USD. You want to fix the exchange rate today by using forward. You get a market quote of: Spot USD/JPY 144.41 / 144.55 2-month swap points 91.63/91.37Step by Step Solution
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Software Engineering Reviews And Audits
Authors: Boyd L. Summers
1st Edition
143985145X, 978-1439851456
