The Mexican peso trades against the US dollar at an indirectly quoted spot exchange rate of USD/MXN 21.000. The 180-day forward rate is USD/MXN 21.705. What is the annualized forward premium or discount for the USD/MXN exchange rate? 6.50% forward discount 3.25% forward discount 3.36% forward premium 6.71% forward premium Question 4 2 The quoted spot cross rate between the Chinese yuan and the Japanese yen is CNY/JPY 17.84. The quoted one-year forward cross rate is CNY/JPY 17.29. Which of the following is true? The Japanese yen trades against the Chinese yuan at a 3.18% forward premium. The Chinese yuan trades against the Japanese yen at a 3.08% forward discount. Both of the other two statements are true. Below are the spot bid/ask exchange rates between the US dollar and South African Rand. Also provided are the forward PIPs required to calculate the one-year forward exchange rates. The forward bid and ask are obtained by dividing the respective forward PIPs by 10,000 and adding them to the spot bid and ask. Spot Bid/Ask USD/ZAR 16.020/16.040 1-year forward PIPs 8100/8200 Identify the percentage swap rate associated with selling US dollars for South African Rand in the spot market today while buying US dollars with South African Rand one year forward. 4.98% 4.84% 4.69% The Mexican peso trades against the US dollar at an indirectly quoted spot exchange rate of USD/MXN 21.000. The 180-day forward rate is USD/MXN 21.705. What is the annualized forward premium or discount for the USD/MXN exchange rate? 6.50% forward discount 3.25% forward discount 3.36% forward premium 6.71% forward premium Question 4 2 The quoted spot cross rate between the Chinese yuan and the Japanese yen is CNY/JPY 17.84. The quoted one-year forward cross rate is CNY/JPY 17.29. Which of the following is true? The Japanese yen trades against the Chinese yuan at a 3.18% forward premium. The Chinese yuan trades against the Japanese yen at a 3.08% forward discount. Both of the other two statements are true. Below are the spot bid/ask exchange rates between the US dollar and South African Rand. Also provided are the forward PIPs required to calculate the one-year forward exchange rates. The forward bid and ask are obtained by dividing the respective forward PIPs by 10,000 and adding them to the spot bid and ask. Spot Bid/Ask USD/ZAR 16.020/16.040 1-year forward PIPs 8100/8200 Identify the percentage swap rate associated with selling US dollars for South African Rand in the spot market today while buying US dollars with South African Rand one year forward. 4.98% 4.84% 4.69%
