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: i. If the bank's customer needs S$5,000 today, how much is that in RM?
As a foreign exchange trader at a Citibank, you are given the following quotations: 1-month 2-month Exchange Rate Spot Rate forward forward 1 Singapore Dollar (S$) 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: i. If the bank's customer needs S$5,000 today, how much is that in RM?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![As a foreign exchange trader at a Citibank, you are given the following quotations:
1-month
2-month
Exchange Rate
Spot Rate
forward
forward
1 Singapore Dollar (S$)
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:
i.
If the bank's customer needs S$5,000 today, how much is that in RM?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F521bc6fe-926a-4583-a622-454680237bf4%2Fdf7545cb-240d-49d6-a3a2-44bd5f74bcb8%2Foxew6a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:As a foreign exchange trader at a Citibank, you are given the following quotations:
1-month
2-month
Exchange Rate
Spot Rate
forward
forward
1 Singapore Dollar (S$)
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:
i.
If the bank's customer needs S$5,000 today, how much is that in RM?
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