As a foreign exchange trader at a Citibank, you are given the following quotations: 1-month 2-month Exchange Rate Spot Rate forward forward 1 Singapore Dollar (S$) 100 Japanese Yen (100¥) 1 Australian Dollar (AUD) RM3.0500/10 RM3.5000/30 RM3.1010/40 20/70 25/65 45/35 60/50 35/70 65/55 Country Malaysia Japan Singapore Rate 15% 3-Month interest rate 10% 20% Calculate: If you as a foreign exchange trader are expected to receive S$5,000 in 1 months' time, how much is it pay in RM? ii.

As a foreign exchange trader at a Citibank, you are given the following quotations: 1-month 2-month Exchange Rate Spot Rate forward forward 1 Singapore Dollar (S$) 100 Japanese Yen (100¥) 1 Australian Dollar (AUD) RM3.0500/10 RM3.5000/30 RM3.1010/40 20/70 25/65 45/35 60/50 35/70 65/55 Country Malaysia Japan Singapore Rate 15% 3-Month interest rate 10% 20% Calculate: If you as a foreign exchange trader are expected to receive S$5,000 in 1 months' time, how much is it pay in RM? ii.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Consider the following returns: Period United States United Kingdom Exchange Rate 1 10% 5% $3 2 15% -5% 2.5 3 -5% 15% 2.5 4 12% 8% 2 5 6% 10% 1.5 6 2.5 Note that the exchange rate is stated as beginning of period dollars for pounds. What is the average return in each market from the point of view of a US investor and of a UK investor?
Based on the table below, which currencies appreciated between January and March? Name of Currency Exchange Rate JANUARY $1 = Exchange Rate MARCH $1 = Polish Zloty 4.5 4.08 Mozambique Meticals 62.5 66.00 Albanian Lek 109.08 111.60 Australian Dollar 1.85 1.67 a. Mozambique Metical b. Polish Zloty c. Albanian Lek d. Australian Dollar
Study Problem 11-9 (algo) The table below shows some actual data concerning exchange rates and the prices of SuperDuper Burgers in the summer of 202- Actual Exchange Rate SuperDuper Burgers 5.35 6.4 4.7 15.36 Location Toronto Switzerland Singapore Hong Kong. Switzerland: 0.83 Swiss francs. Singapore: $ 1.13 Hong kong $ Singapore. Singapore dollar is Honk Kong dollar is Canadian dollars Swiss francs Singapore dollars Hong Kong dollars Hong Kong $1 Canadian $1 Canadian $1 Canadian a. Assuming purchasing power parity, what should the price of SuperDuper Burgers be in the three countries? Round your answers to decimal places. = d = 8.91 Swiss francs. 1.27 Singapore dollars 7.71 Hong Kong dollars b. Compared with the actual prices of SuperDuper Burgers in the three countries, are the actual exchange rates overvalued or undervalued? Swiss franc is
1 Suppose that 1-year interest rate in US is 2%, 1-year interest rate in Japan is 3%, spot exchange rate is Yen 110/$, 1-year forward rate is Yen 112/$. Will you prefer to invest in Japan or in US? No difference to invest in Japan or in US A₁ B₁ C₁ In China D₂ In US In Japan
Suppose a German importer owes an Australian exporting company 150,000 AUD, due in three months. S_0 (EUR/AUD) 0.60 Se (EUR/AUD) 0.50 (0.3) and 0.65 (0.7) Premium on AUD call option R = EUR0.02 Exercise exchange rate E = 0.62 Time to expiry 3 months What is the expected value of payables in AUD under hedge Will the option to hedge be undertaken on the basis of expected spot rate? Explain.
On December 20, 2023, Momeier Company (a U.S.-based company) sold parts to a foreign customer at a price of 165,000 rials. Payment is received on January 10, 2024. Currency exchange rates are as follows: DateU.S. Dollar per RialDecember 20, 2023$ 1.26December 31, 20231.23January 10, 20241.19 Required: How does the fluctuation in the U.S. dollar per rial exchange rate affect Momeier's 2023 income statement? How does the fluctuation in the U.S. dollar per rial exchange rate affect Momeier's 2024 income statement? a. The rial receivable exchange b. The rial receivable exchange S in U.S. dollar value, resulting in a foreign of in 2023. in U.S. dollar value, resulting in a foreign of in 2024.
Answer the attached question
2 XYZ Company sells goods to a foreign customer on June 8. Payment of 3,000,000 foreign currency units (FC) is due in one month. June 30 is XYZ Company’s fiscal year-end. The following exchange rates were in effect during the period: June 8 Spot rate $1.10 June 8 30 day forward rate $1.15 June 30 Spot rate $1.14 July 8 Spot rate $1.20 A For what amount should XYZ Accounts Receivable be debited on June 8 B How much foreign exchange gain or loss should XYZ record on June 30
Using info in the table below calculate how many USD you would have to pay 2 months from now to buy EUR 10,000 if you lock into a 2 month forward contract now. 98) Settings. 10,966 11,394 11,044 14,895 1) G10 11) All G10 12) 13) 14) 15) 16) 17) 18) 19) 20) 21) 22) titokb US Euro Japan UK Canada Australia ON TN Spot SN 1W 1M Switzerland 2M Denmark 3M Norway 6M Sweden N. Zealand 90) FX Markets Overview 91) FX Forwards 92) FX Options and Volatility 93) Economics 30) Forward Term Structures - Points | XDSH >> EURUSD 2) Asia 3) Europe/Africa 4) Latin America 5) Middle East 6) Metals .60 .63 1.1005 .69 -2.06 4.78 -14.26 20.22 -63.47 38.90 -128.04 56.04 -189.12 100.88 -370.08 168.84 -698.24 1Y 40) Term Structure Chart - Outrights | XCRV >> Chart 136.000000- 134.000000 132.000000- 130.000000- 128.000000 126.000000- 124.835098 124.000000 Graph terms from TOD USDJPY GBPUSD USDCAD AUDUSD NZDUSD USDCHF USDDKK USDNOK USDSEK -11.01 .31 -.22 .22 -.07 -.94 -3.83 -5.55 -5.84 -2.04 .26 -.21 .17 -.02…
The following tables contain information on Swiss Franc/Singapore dollar exchange rate and their interest rates: Currency Spot 1 Month 3 Months 6 Months 12 Months CHF/SGD 6.6575/625 73/86 263/296 505/590 1194/1351 Currency 1 Month 3 Months 6 Months 12 Months SGD 5.6785-5.8125 5.5000-5.6250 5.5000-5.6250 5.6250-5.7500 CHF 7.1250-7.2500 7.1875-7.3125 7.1875-7.3125 7.2500-7.3750 Consider the 12-month premium/discount and the relevant interest rates. Is there way to make arbitrage profits? If yes, explain the strategy. Assume you have CHF 10m to work with.
1. Calculate the annual interest rate in France using the below information: The annual interest in USA 3.00% Spot exchange rate: EUR0.77065/USD 1 year Forward exchange rate EUR0.78125/USD
Table 4.2 Currency Cross Rates (2:00 p.m. ET, Per CS Canadian dollar (C$). U.S. dollar (US$) Euro (€) Japanese yen (x) British pound (£) Swiss franc (Swfr) Australian dollar (A$) 0.75569 0.65537 January Per US$ 1.32329 11, 2019) Per Y Per C 0.012238 1.52586 1.15307 0.009249 0.008021 0.86725 . 81.71270 108.11980 124,67273) 0.59198 0.73894 1.05216 0.78337 0.97783 1.39232 Per E 1.68925 1.27654 1.10720- 138.12155 0.90318 0.00724 0.00904 1.12744 0.01288 1.60535 Per Sw fr Per AS 1,35328 0.95043 1.02267 0.71823 0.88697 0.62292 110.61947 77.63975 0.80122 0.56273 0.70245 1.24809 1.77704 1.42359 If the C$ strengthens by £0.0021 from the value in Table 4.2, what will be the new value of C$ per £1.00? (Do not round your intermediate calculations. Round your answer to 4 decimal places.) New value C$ per £1.00

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS