QUESTION 1 The SF/$ spot exchange rate is SF1.2375 and the 180 day forward exchange rate is SF1.30/. The forward premium (discount) is o the dollar trading at a 4% discount to the Swiss franc for B. the dollar trading at an 8% discount to the Swiss franc for c. the dollar trading at an a premium to the Swiss franc D. the dollar trading at a premium to the Swiss fran QUESTION 2 You are a U.S. based treasure with $1.000.000 ts invest you a cross rate of 1.00 -1.25 how can you make money the dollar pound exchange rate one of the option buy cure $1.500 buy E S C. Buy $2/6, buy a C2/C, sellut D. arbitrages posible QUESTION Suppose you observe the following exchange rates 6 51 52.00. Calculate the euro po A 1.3333 .00 C63.00 OD 61.25-21.00 QUESTION 1 The 5/$ spot exchange rate is 5F1.25/5 and the 180 day forward exchange rate is SF1.30/5. The forward premium (discounts O A the dollar trading at a 4% discount to the Swiss franc for delivery in 180 days. B. the dolar trading at an 8% discount to the Swiss franc for delivery in 180 days. the dollar trading at an 8% premium to the Swiss Franc for delivery in 180 days. D. the dollar trading at a 4% premium to the Swiss franc for delivery in 180 days. QUESTION 2 You are a 1.s-based treasurer with $1.000.000 to invest. The dollar euro exchange rate is quoted as $1.50 - 1.00 and the dollar-pound exchange rates quoted at $2.00 - 21.00. ifa bank quotes you a cross rate of 1,00 - 1.25 how can you make money? A none of the options Buy euro a $1.50/. buy cat 1.25/6. sell Cat 52/ OB C. Buy $2/, buy at 1.25/, selle at $1.50/6. D.No arbitrage is possible QUESTION 3 Suppose you observe the following exchange rates: 1 - 51.50: 1 - 5200. Cakulate the euro pound exchange rate A. 61.3333 = 1.00 B. 1.3333 - 61.00 OC 03.00 = 1 D.01.25 = 1.00