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The following market information is provided. S(CAD/USD) = 1.3025/35 (CAD per USD) The 1-month swap points = 15/25 Note: CAD = Canadian Dollars; USD =

The following market information is provided. S(CAD/USD) = 1.3025/35 (CAD per USD) The 1-month swap points = 15/25 Note: CAD = Canadian Dollars; USD = United States Dollars (i) If a financial manager wishes to buy 3,500,000 USD against CAD in the spot market, what is the amount of CAD that the financial manager will need to pay? (ii) If a financial manager wishes to sell USD against CAD using a 1-month forward contract, what is the forward rate that will be used for the transaction? (iii) Suppose the mid-rate of S(SGD/USD) is 1.4050 (SGD per USD), calculate the cross rate of S(SGD/CAD), which is the amount of SGD per CAD. You may use the mid-rate of S(CAD/USD) = 1.3030 for your calculations. You may leave your final answer in 5 decimal places.

(iv) What is the bid and offer price of CAD in terms of USD as denoted by S(USD/CAD)? You may leave your final answer in 5 decimal places.

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