(2) Miss Liu who lives in China bought an iPod on Ebay with price of 100 USD, so how much RMB she cost?

Q: 1. ABC Corp has Accounts Receivable of FC 400,000 and Accounts Payable of FC 300,000 on both March…

A: Given information, Accounts receivable =FC 400,000 Accounts payable =FC 300,000   To determine the…

Q: On September 1, 20x2, Jackson Company entered into a 60-day forward contract denominated in euros.…

A: Given: 1st September 20X2 spot rate = $0.75 Forward contract was entered on 1st September 20X2…

Q: Forward rates. Your company has posted you on a 30-month overseas assignment in Budapest, Hungary…

A: Forward exchange rates are the prices of one currency quoted in terms of another currency at a…

Q: Please answer the next question based on the following quotes on currency options contracts for…

A: The objective of the question is to determine the status of the call option (in-the-money or…

Q: Below are the spot and 3-month quotation for RM/EUR and RM/JPY Kuala Lumpur Quotations: Spot 3-month…

A: Data given: Spot rate ::100 Yen = RM 3.9730 - 3.9755 3 -month forward :: 100 Yen = RM 3.9782 -…

Q: A forward rate agreement (FRA) is

A: Meaning of FRA i.e., Foreign Rate Agreement Forward rate agreement is a contract to determine the…

Q: Below are the Kuala Lumpur market quotations of spot, 1-month and 3-month rate for RM/BND and…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: A brokerage company made the following deals: Calculate the result (profit or loss?) * 10.00 a.m.:…

A: 10 am:10 million USD sold; GBP purchased.GBP / USD = 1.2892So, GBP purchased = 10 million / 1.2892…

Q: Using info in the table below calculate how many USD you would have to pay 2 months from now to buy…

A: The screen from Bloomberg terminal shows indirect spot and forward quotes for various pair of…

Q: Subject: Islamic banking Q): Financing Amount  : Rs 100mn (Jan 1), Profit Rate  : 16% p.a. Tenor…

A: Financing amount "PV" - Rs. 100 mn Profit rate = 16% p.a Tenor = 1 Now, 4 equal payments in a year…

Q: Quartzite. The spot rate for Mexican pesos is Ps12.44 = $1.00. If the U.S.-based company Quartzite…

A: Spot RateSpot rate also known as Spot price refers to the rate/price at which a given currency can…

Q: U.S. Company purchases from Japanese Company for 60 million yen when the exchange rate is $.009.…

A: Amount payable = Liability in Yen x exchange rate on purchase date = 60 million yen x 0.009 =…

Q: Please answer the next question based on the following quotes on currency options contracts for…

A: Call options gives you opportunity to buy particular currency on given exercise price on the…

Q: An Indian bank displayed the spot rate, 30 days and 60 days forward rates for INR/USD as follows:…

A: The forward rate will be the spot rate plus the 60-day forward premium

Q: Kuala Lumpur Quotations: Spot 3-month forward Per unit of Euro (€) RM4.4920/60 45/75 100 unit of Yen…

A:

Q: oday's foreign quotation. Below are the following quotes: - 100 JPY/USD 1.60 USD/GBP 140 JPY/GBP…

A: The arbitrage profit is due to mispricing in the market and is short term profit by buying one…

Q: Below are the spot and 3-month quotation for RM/EUR and RM/JPY Kuala Lumpur Quotations: 100 unit of…

A:

Q: (5) Miss Liu sold her second-hand iPod to a friend with price of 60 USD in cash, she go to bank to…

A: Bid is the amount she will receive in Yuan if she sells 1 USD, and the ask is the amount she needs…

Q: ng Quotes for Foreign Currencies in New York ntry-Currency Contract Spot 30-day 90-day on the icon…

A: Arbitrage is risk free profit that can be obtained by selling one currency in one market and buying…

Q: Consider this (incomplete) table of FX cross-rates USD EUR JPY GBP CHF CHF Column JPY USD EUR JPY…

A: Row = CHFColumn = JPYMeans CHF per JYP 1 CHF = 96.00 JYPExchange rate = 96.00 JYP per CFH

Q: The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($ per…

A: Introduction:Spot rates: These rates are used when buying or selling currencies on the spot…

Q: Based on the next table, calculate the GBP/CHF quote. EUR/USD 1.15697 USD/JPY 105.230 GBP/USD…

A: Information Provided: EUR/USD = 1.15697 USD/JPY = 105.230 GBP/USD = 1.31946 USD/CHF = 0.95564…

Q: A bank in Mississauga has a buying rate of ¥1 = C$0.01275. If the exchange rate is ¥1 = C$0.01315,…

A: Buying rate = ¥1 = C$0.01275 exchange rate = ¥1 = C$0.01315

Q: What is the present value of the market-maker's net cash flow if spot rates are 102 instead?

A: Present value (PV) is the current value of a future sum of money or stream of cash flow given a…

Q: given in the following table: Selling Quotes for Foreign Currencies in New York Country-Currency…

A: Arbitrage is risk free profit that can be obtained by selling one currency in one market and buying…

Q: Bhupatbhai

A: Spot exchange rate: The current exchange rate allowing you to exchange one currency for…

Q: A bank offers 6.00% on savings accounts. What is the effective annual rate if interest is compounded…

A: The effective annual rate of interest is the real return on the savings account when the effects of…

Q: i. Spot percentages bid-ask spread for RM/€ and RM/¥100

A: In forex, spreads are a small amount of money invested in buying (bidding) and selling (asking) the…

Q: TB SA Qu. 06-69 If you had borrowed $1,000,000..... Use the information below to answer the…

A: Exchnage Rate is that rate which help two countries will doing the trading. It help in import &…

Q: ABC Corp. borrows $5 million at 10% from a bank and swaps this loan for a 12% yen loan. The spot…

A: $ amount borrowed = $5 millionSpot exchange rate : $1 = ¥ 105The dollar amount is swaped for yen…

Q: A bank in Toronto charges 3.25% commission to buy and sell currencies. Assume that the current…

A: To calculate the cost of purchasing US dollars, we can use the formula: Cost in CAD = Amount in USD…

Q: Below are the spot and 3-month quotation for RM/EUR and RM/JPY Kuala Lumpur Quotations: 100 unit of…

A:

Q: The OMR rate per US Dollar is quoted as OMR 2.4500 - OMR 2.5000 = $1. Company A wants to buy dollars…

A: Bid rate and ask rate refer to the rate quoted by the bank to exchange foreign currency. Where the…

Q: * is a UK based company which has the Following Us$ transactio O ne month : Expected receipt of $240…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 8: Calculate the cross rate between the Costa Rican colón (CRC) and the Canadian dollar (CAD) from…

A: In doing international business sometime, to convert into another currency indirectly third currency…

Q: On December 31, 2001 Historic Bank had long positions of 200,000,000 Japanese Yen and 50,000,000…

A: Long position  A long position is referred to as the position which is opposite of a short position…

Q: An Australian dealer wants to buy 1,000,000 USD by the rate 0.65USD/AUD in 6 months from now, he…

A: A currency forward is a contract which locks the future exchange rate of the currency for the…

Q: Round your answers to one decimal place. As in 10.1 %. Actual Rate US 5.81 USD Britain 3.59 pound…

A: Foreign exchange market includes trading one currency for another at predetermined exchange rates…

Q: 2. The following data are taken from the financial market pages of an Australian newspaper Forward…

A: Bid-Ask price is the price at which the foreign exchange can be bought and sld.

Q: Spot Rates 129.87 Mid Rates Bid Forward Rates 1 month 6 months 129.68 128.53 129.82 -20 -136 Ask…

A: Forward contract is the contract for the delivery in the future period it may be on discount or…

Q: Given: ICAD/0.8USD Spot rate 3 month forward rate 90 Days interest rates Canada ICAD/0.79USD 4% USA…

A: Covered interest arbitrage is an arbitrage trading strategy in which an investor capitalize on the…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.