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Port & A What would be the company's loss or profit in the currency market? If the company enters the Egyptian market in 3 months,

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Port & A What would be the company's loss or profit in the currency market? If the company enters the Egyptian market in 3 months, for the rest of the year. (Hint calculate the forward rate after 12 month and the swap difference- use the calculation of the CB of Egypt in your calculation) (6 pt) 8. The company decided to enter immediately into an ERA agreement with the CB of Egypt. On the settlement date- 3 months later, we have the following information available: the spot rate was 21/S, the 9-month rate in the US is 2%, while the 9-month rate in Egypt is 20% 1. What would be the new swap point? (pt) 2. would the company's losses in this market increase or decrease based on their previous estimation? Explain (3pt) 3. Use the ERA agreement to calculate any compensation that the company is entitled to - according to this agreement (pt) 4. Explain the International Fisher Effect. How would you apply in this case? 3pt-Bonus Good Luck Port & A What would be the company's loss or profit in the currency market? If the company enters the Egyptian market in 3 months, for the rest of the year. (Hint calculate the forward rate after 12 month and the swap difference- use the calculation of the CB of Egypt in your calculation) (6 pt) 8. The company decided to enter immediately into an ERA agreement with the CB of Egypt. On the settlement date- 3 months later, we have the following information available: the spot rate was 21/S, the 9-month rate in the US is 2%, while the 9-month rate in Egypt is 20% 1. What would be the new swap point? (pt) 2. would the company's losses in this market increase or decrease based on their previous estimation? Explain (3pt) 3. Use the ERA agreement to calculate any compensation that the company is entitled to - according to this agreement (pt) 4. Explain the International Fisher Effect. How would you apply in this case? 3pt-Bonus Good Luck

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