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Please show details working with justifications for every calculation part (the outright rates, forward bid outright, percentage spread, bid and ask rates, annualized premium (discount)).
Please show details working with justifications for every calculation part (the outright rates, forward bid outright, percentage spread, bid and ask rates, annualized premium (discount)).
a) The following information is provided by Aurora Borealis Advisors. There are several different exchange rate circumstances for currency transaction. Maturity Currency Exchange Rates Value of Malaysian Ringgit Value of Jordanian Dinar (JOD) in (RM) in Australian Dollar Malaysian Ringgit (RM) (AUD) Bid 0.4000 Bid 4.2000 Spot 30-day 60-day Ask 0.5000 20/10 15/25 Ask 4.3000 10/20 25/15 Three Month Interest Rates (Percent) Malaysia 3.0 Australia 3.5 Jordan 2.5 You are required to show your workings based on the given information of the currency exchange rates. (9 marks) D) Calculate the outright rates of RM per AUD at 30 days. 10) Compute 2-month forward bid outright RM per JOD. 10) Compute the percentage spread on the spot AUD per JOD quotation. iv) Determine bid and ask rates of AUD per JOD in 90 days. ) Calculate 3-month annualized premium (discount) of AUD in JOD
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