Question
Q 1 to Q 7 combined: You have just started working as a trader for Credit Suisse in New York. The following are quotes for
Q 1 to Q 7 combined: 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: The bid rate is 128.02 JPY per USD the Ask Rate is 128.06 JPY per USD
Forward points: 1 month forward 12 - 09 3 months forward 46 - 41 6 months forward 102 - 92 1 year forward 204 - 184
Q 3 & Q 4 combined (this continues on from all the information in Q 1): A different customer, Wallaby Exports, calls you and asks you for the exchange rate at which they can sell to you 2 Mio USD for delivery 6 months forward.
Q 3: What exchange rate do you quote? Give your answer to 2 decimal places.
Q 4: How many JPY will the customer, Wallaby Exports, receive in 6 months time in exchange for the 2 mio USD. Give your answer to the nearest JPY.
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