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At what rate are you going to sell USD to minimize cost given Dollar Yen quotes from three counterparties? Bank A: 110.60-90; Bank B: 110.75-95; Bank C: 110.65-85 110.95 110.75 110.60 110.85

At what rate are you going to sell USD to minimize cost given Dollar Yen quotes from three counterparties? Bank A: 110.60-90; Bank B: 110.75-95; Bank C: 110.65-85 110.95 110.75 110.60 110.85

Essentials Of Investments
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
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  1. At what rate are you going to sell USD to minimize cost given Dollar Yen quotes from three counterparties? Bank A: 110.60-90; Bank B: 110.75-95; Bank C: 110.65-85
  1. 110.95
  2. 110.75
  3. 110.60
  4. 110.85

 

  1. At what rate are you going to buy JPY to minimize cost given Dollar Yen quotes from three counterparties? Bank A: 110.60-90    Bank B: 110.75-95   Bank C: 110.65-85  
  1. 110.95
  2. 110.75
  3. 110.60
  4. 110.85

 

  1. Market is quoting: USD/AUD 1.35 – 1.50.  As an intermediary between your client and the market, what will be your AUD buying rate from your corporate client if you want a spread of 5 pips?
  2. 1.40
  3. 1.30
  4. 1.55
  5. 1.45

 

  1. The Philippine economy is expected to recover from pandemic as inflation and interest rates are expected to rise. If you are the bank, which of following strategies should you do to take advantage of this view?
  2. Borrow Long and Lend Short
  3. Lend Long and Borrow Short
  4. Borrow and Lend Long
  5. Borrow and Lend Short

 

  1. You took a long position on HKD when the prevailing market rate was: USD/HKD 7.805 -815. After three months, you closed your net FX position when the prevailing market rate was USD/HKD 7.810 - 820. How may pips did you earn or lose?
  2. 15 pips gain
  3. 15 pips loss 
  4. 5 pips gain 
  5. 5 pips loss
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