Calculate the cross rate between the EUR (the euro) and the INR (Indian rupee). Set it up as INR/EUR. The following is a list of available rates: USD 1.17/EUR USD 0.27/SAR  SAR 4.38/EUR  INR 64.4/USD  Options are: EUR 17.388/INR  EUR 0.0575/INR  INR 75.348/EUR  INR 17.388/EUR

Q: Please use the data below, to answer the following question. Interest rate in US (Rh): Interest rate…

A: Current spot rate for EUR (S0)$1.25Expected spot rate for EUR  1 year later (S1)$1.30Interest rate…

Q: A treasurer of a company got the following quotation from an FX dealer: "The dollar euro is…

A: Let u break the foreign exchange quote.  The dollar euro is sixty-two ten-fifteen is the current…

Q: or the following practice questions use these rates that your bank has quoted you:   EUR/USD:…

A: Given information from question   EUR/USD:        1.0175 – 1.0180 GBP/USD:        1.2065 – 1.2070…

Q: If euros sell for $1.71 (U.S.) per euro, what should dollars sell for in euros per dollar? Round…

A: Forex refers to foreign exchange. Each country has its own currency. When two countries trade with…

Q: Use the table to complete following questions: Canadian Dollar: Spot and Forward (CS/S) Euro: Spot…

A: $100=1.2651∗100C$.=126.51C$

Q: For the next few questions, here are the currency rates quoted to you buy ABC Bank, the bank that…

A: Exchange rates between three different pairs of currencies have been given. We have to create the…

Q: In a recent e-news, you observe that the 6-month forward rate is $1.5031 / Euro. Further, if you…

A: To determine if arbitrage profit is possible, we need to analyze the interest rate parity and…

Q: You are given that the annual Australian dollar interest rate is 1% and the United States annual…

A: The forward rate premium is the difference between the expected and the spot exchange rate. It…

Q: You can exchange $1 for either .9102 euro or .7233 British pounds. What is the cross-rate in terms…

A: Exchange rate of €‎/$ = 0.9102 Exchange rate of £‎/$ = 0.7233   Cross rate = ?

Q: Compare graphically the exchange rates between the two currencies between the period mid 2007 – mid…

A: The exchange rate refers to the rate at which one currency can be exchanged for another. Since a…

Q: ou can borrow and lend at the interest rates of 8.00% in the US and 7.00% in Canada. Based on…

A: US Interest Rate = 8.00% or 0.08Canada Interest Rate = 7.00% or 0.07Interest Rate Parity (IRP) is a…

Q: You need to convert some Swiss francs into euros (€). In addition to quoting the dollar/franc…

A: Exchange Rate ($/CHF) = $1.05/CHF Exchange Rate ($/∈) = $1.15/∈

Q: Spot rate €1.2562/£; 1 month forward €1.2662/£ Which of the two currencies is trading at forward…

A: Forward contracts are derivative contracts. In these contracts, a specified price is locked in for a…

Q: assume the direct quote on the euro is 2.14 and the indirect quote on the Swiss franc is 0.76. what…

A: Direct quote on the euro = 2.14Indirect quote on the Swiss franc  = 0.76

Q: Suppose that the exchange rates between euro, U.S. dollar and the yen are given in the table below.…

A: Three point arbitrage opportunity took place by using three different currencies, it includes buying…

Q: If euros sell for $1.63 (U.S.) per euro, what should dollars sell for in euros per dollar? Round…

A: The question is related to calculation of euro per dollar Euro per dollar = 1 ÷ dollar per euro

Q: Consider this (incomplete) table of FX cross-rates USD USD EUR JPY 110.00 GBP CHF EUR JPY CHF Column…

A: We are required to compute intersection of Row CHF Column EUR That means , we are required to…

Q: In a recent e-news, you observe that the 6-month forward rate is $1.5031 / Euro. Further, if you…

A: Thus, if we follow the arbitrage strategy described, there would be a loss of 36,021 USD, indicating…

Q: Suppose, the price of an euro changes to $1.25. How much is the new price of dollar in terms of…

A: Lets understand the basics.When tranasction happens in foreign currency then conversation of home…

Q: Assume that the one-year interest rate is 3% p.a. in the UK and 2% p.a. in the Euro area. Also,…

A: Step 1: Analyzing the Interest Rate Parity (IRP) TheoryAccording to the IRP theory, the forward…

Q: If the 4 month forward exchange rate is €:$= 1.2500 and the spot rate is €:$ = 1.2800, culate the…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Given the following exchange rates in the market, what should be the cross exchange rate between…

A: Cross exchange rate is the rate which is determined between two currencies. Both the currencies are…

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: Currently AUD/USD currency pairs have a quote of 0.7197-99 in Oanda trading platform. If you follow…

A: When there is expectation that prices will go down then there is need to short sell and this gives…

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.