Question
Q 1 to Q 7 combined (this information gets used in later questions as well): You have just started working as a trader for Credit
Q 1 to Q 7 combined (this information gets used in later questions as well):
You have just started working as a trader for Credit Suisse in New York. The following are quotes for Japanese (JPY) against the dollar (USD) for spot, 1 month forward, 3 months forward, 6 months forward and one year forward. All the rates are quoted as the number of JPY per USD. Spot exchange rate: Bid rate 128.02 JPY per USD Ask rate 128.06 JPY per USD Forward points: 1 month forward 12 - 09 3 month forward 46 - 41 6 month forward 102 - 92 1 year forward 204 - 184
Q 1 & Q 2 combined: A customer TBI International inc calls you and ask you for the exchange rate at which they can sell to you 500 mio JPY for delivery 3 months forward.
Q 1: What exchange rate do you quote? Give your answer to 2 decimal places.
Q 2: How many USD will the customer TBI International inc receive in 3 months time in exchange for the 500 mio JPY. Give your answer to the nearest USD.
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The Social Profit Handbook
Authors: David Grant
1st Edition
1603586040, 978-1603586047
