Question 1

The spot exchange rate is 1.1132 GBP/EUR and the 1-year forward rate is quoted as +1349 points. The 1-year forward

exchange rate for GBP/EUR is closest to:

Question 2

If the current spot exchange rate for quotes of JPY/GBP is greater than the no-arbitrage 3-month forward exchange rate, the 3-month GBP interest rate is:

Question 3

The spot exchange rate for Canadian dollars (CAD) per Swiss franc (CHF) is 1.1350 CAD/CHF and the 12-month forward exchange rate is 1.1460 CAD/CHF. The forward quote is a:

Question 4

The exchange rate for Chinese yuan (CNY) per euro (EUR) changed from CNY/EUR 8.1588 to CNY/EUR 8.3378 over a 3-month period. It is most accurate to state that the:

Question 5

The spot rate for Japanese yen per UK pound is 138.78. If the UK interest rate is 1.75% and the Japanese interest rate is 1.25%,

the 6-month no-arbitrage forward rate is closest to:

Question 6

The exchange rate for Japanese yen (JPY) per euro (EUR) changes from 98.00 to 103.00 JPY/EUR. How has the value of the EUR changed relative to the JPY in percentage terms?

Question 7

A Swiss investor is wondering whether he can make a riskless profit giving the following quoted exchange rates. Can you help him take a decision knowing that he has 2 million Swiss francs to invest? (ignore any transaction costs).

SAR/USD: 3.7401 - 3.7602

CHF/SAR: 0.3013 - 0.3161

CHF/CAD: 0.6956 - 0.7162

CHF/USD: 0.9423 - 0.9613

Question 8

If the spot exchange rate between the British pound and the U.S. dollar is GBP/USD 0.7775, and the spot exchange rate between the Canadian dollar and the British pound is CAD/GBP 1.8325, what is the USD/CAD spot cross exchange rate?

Question 9

The spot exchange rate is 0.6243 USD/GBP and the 1-year forward rate is quoted as 3.016%. The 1-year forward exchange rate for USD/GBP is closest to:

Question 10

The spot exchange rate for United States dollars per United Kingdom pound (USD/GBP) is 1.5775. If 30-day interest rates are

1.5% in the United States and 2.5% in the United Kingdom, and interest rate parity holds, the 30-day forward USD/GBP

exchange rate should be:

Question 11

Assuming no changes in the prices of a representative consumption basket in two currency areas over the measurement period, changes in the nominal exchange rate:

Question 12

The exchange rate of the Athelstan riyal (ATH) with the British pound is 9.00 ATH/GBP. The exchange rate of the Mordred ducat (MOR) with the U.S. dollar is 2.00 MOR/USD. If the USD/GBP exchange rate is 1.50, the ATH/MOR cross rate is closest to:

Question 13

If the exchange rate value of the CAD goes from USD 0.60 to USD 0.80, then the CAD:

Question 14

A Tunisian investor is wondering whether she can make a riskless profit giving the following quoted exchange rates. Can you help her take a decision knowing that she has 1.5 million Tunisian dinars (TND) to invest? (Ignore any transaction costs).

USD/CHF: 1.0512 - 1.1212

TND/CHF: 2.999 - 3.1216

CHF/CAD: 0.6956 - 0.7162

USD/TND: 0.3012 - 0.3195

Question 15

Given the following quotes, GBP/USD 2.0000 and MXN/USD 8.0000, calculate the direct MXN/GBP spot cross exchange rate.

Question 16

If we compare the prices of goods in two countries through time, we can use the price information in concert with the quoted foreign exchange rate to calculate the:

Question 17

The current spot rate for the British pound in terms of U.S. dollars is $1.533 and

the 180-day forward rate is $1.508. Relative to the pound, the dollar is trading

closest to a 180-day forward:

Question 18

The exchange rate for Australian dollars per British pound (AUD/GBP) was 1.4800 five years ago and is 1.6300 today. The percent change in the Australian dollar relative to the British pound is closest to:

Question 19

Country G and Country H have currencies that trade freely and have markets for forward currency contracts. If Country G has an interest rate greater than that of Country H, the no-arbitrage forward G/H exchange rate is:

Question 20

The spot CHF/EUR exchange rate is 1.2025. If the 90-day forward quotation is +0.25%, the 90-day forward rate is closest to:

Question 21

The spot rate for Chinese yuan per Canadian dollar is 6.4440. If the Canadian interest rate is 2.50% and the Chinese interest

rate is 3.00%, the 3-month no-arbitrage forward rate is closest to:

Question 22

If the AUD/CAD spot exchange rate is 0.9875 and 60-day forward points are 25, the 60-day AUD/CAD forward rate is closest to:

Question 23

The spot exchange rate for CHF/EUR is 0.8342 and the 1-year forward quotation is 0.353%. The 1-year forward exchange rate for EUR/CHF is closest to:

Question 24

The spot rate on the New Zealand dollar (NZD) is NZD/USD 1.4286, and the 180-

day forward rate is NZD/USD 1.3889. This difference means:

Question 25

The USD/EUR spot exchange rate is 1.3500 and 6-month forward points are 75. The 6-month forward exchange rate is:

Question 26

Given an exchange rate of USD/CAD 0.9250 and USD/CHF 1.6250, what is the cross rate for CAD/CHF?

Question 27

One year ago, the nominal exchange rate for USD/EUR was 1.300. Since then, the

real exchange rate has increased by 3%. This most likely implies that:

Question 28

The annual risk-free interest rate is 10% in the United States (USD) and 4% in Switzerland (CHF), and the 1-year forward rate is USD/CHF 0.80. Todays USD/CHF spot rate is closest to:

Question 29

Spot and one-month forward exchange rates are as follows:

Spot 1-month forward

EUR/DEF 2.5675 2.5925

EUR/GHI 4.3250 4.2800

EUR/JKL 7.0625 7.0075

Based on these exchange rates, the EUR is closest to a 1-month forward:

Question 30

The difference between Country D's nominal and real exchange rates with Country F is most closely related to: