QUESTION 1 Suppose that the current exchange rate indirect quote is 0.80 = $1.00. The direct quote, from the U.S. perspective, 1 Euro is worth USD. QUESTION 2 If you need 3,500 UK but you have Denmark Krone. Using the exhibit 5.4. how much would Krone do you pay? QUESTION 3 The difference between a broker and a dealer is O dealers sell drugs: brokers sell houses. dealers bring together buyers and sellers, but carry no inventory, brokers stand ready to buy and sell from their inventory. brokers bring together buyers and sellers, but carry no inventory, dealers stand ready to buy and sell from their inventory brokers transact in stocks and bonds currency is bought and sold through dealers. O None of the above choices 1.5 p QUESTION 4 Using Exh 5.4. round to 4 decimal places, the cross rate for 1 euro = Denmark krone. Question Completion Status: QUESTION 5 You are a U.S.-based treasurer with $1,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = Euro 1.00 and the dollar-pound exchange rate is quoted at $2.00 = 1.00 If a bank quotes you a cross rate of 1.00 = Euro 1.20 how can you make money? O No arbitrage is possible O Buy euro at $1.60/Euro, buy at Euro1.20/, sell at $2/ O Buy $2/, buy Euro at Euro 1 20/, sell Euro at $1.60/Euro O none of the options QUESTION 6 1.5 Suppose the spot ask exchange rate, Sa(S|). is $1,90 = 1.00 and the spot bid exchange rate. Sb($), is $1.89 1.00. If you were to buy $10.000.000 worth of British pounds and then sell them five minutes later, how much of your $10,000,000 would be eaten" by the bid-ask spread? QUESTION 7 Which of the following statement(s) is/are true? When you buy from the dealer, you transact at the bid price. II. When you sell to the dealer, you transact at the ask price. III. The dealer will offer higher bid-ask spread if the security is more risky I only QUESTION 7 Which of the following statement(s) is/are true? 1. When you buy from the dealer, you transact at the bid price. II. When you sell to the dealer, you transact at the ask price. III. The dealer will offer higher bid-ask spread if the security is more risky O I only O ll only Ill only O I and II only None of the above answers QUESTION Suppose the dealer provides these spot rate quotes: S(SUK Pound) 1.8515 05 & S(5 Euro) 1.5250 05. Suppose you have 10,000 UK pounds and want to receive Euro. How much Euro, to 2 decimal places, will you get if you transact with this dealer