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Here are direct spot and forward markets quotes for EUR over three points in time: now (1/1/XX), one month later (2/1/XX), three months later (4/1/XX), and six months later (7/1/XXX). 1/1/XX EUR Spot 1.3075 1 Month Forward 1.3271 3 Month Forward 1.3470 6 Month Forward 1.3672 2/1/XX 4/1/XX 1.3006 1.3605 1.3201 1.3809 1.3399 1.4016 1.3600 1.4226 7/1/XX 1.3296 1.3496 1.3698 1.3904 On 1/1/XX Dell solda 1 month forward contract of EUR 1.000.000 to Chase. Based on this transaction: A

Here are direct spot and forward markets quotes for EUR over three points in time: now (1/1/XX), one month later (2/1/XX), three months later (4/1/XX), and six months later (7/1/XXX). 1/1/XX EUR Spot 1.3075 1 Month Forward 1.3271 3 Month Forward 1.3470 6 Month Forward 1.3672 2/1/XX 4/1/XX 1.3006 1.3605 1.3201 1.3809 1.3399 1.4016 1.3600 1.4226 7/1/XX 1.3296 1.3496 1.3698 1.3904 On 1/1/XX Dell solda 1 month forward contract of EUR 1.000.000 to Chase. Based on this transaction: A

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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Here are direct spot and forward markets quotes for EUR over three points in time: now (1/1/XX), one month later (2/1/XX). three months later (4/1/XX), and six months later (7/1/XX). EUR Spot 1 Month Forward 3 Month Forward 6 Month Forward 1/1/XX 1.3075 1.3271 1.3470 1.3672 2/1/XX 1.3006 1.3201 4/1/XX 1.3605 1.3809 1.3399 1.4016 1.3600 1.4226 7/1/XX 1.3296 1.3496 1.3698 1.3904 On 1/1/XX Dell sold a 1 month forward contract of EUR 1,000,000 to Chase. Based on this transaction: O Dell will pay EUR 1,000,000 to Chase in 1 month, and will receive USD 1.327.100 from Chase in 1 month Dell will pay USD 1.300.600 to Chase in 1 month and will receive EUR 1.320,100 from Chase in 1 month O Dell will pay EUR 1.000.000 to Chase in 1 month, and will receive USD 1,300,600 from Chase in 1 month O Dell will pay EUR 1.327.300 to Chuse in 1 month, and will receive USD 1,300,600 from Chase One in 1 month
Transcribed Image Text:Here are direct spot and forward markets quotes for EUR over three points in time: now (1/1/XX), one month later (2/1/XX). three months later (4/1/XX), and six months later (7/1/XX). EUR Spot 1 Month Forward 3 Month Forward 6 Month Forward 1/1/XX 1.3075 1.3271 1.3470 1.3672 2/1/XX 1.3006 1.3201 4/1/XX 1.3605 1.3809 1.3399 1.4016 1.3600 1.4226 7/1/XX 1.3296 1.3496 1.3698 1.3904 On 1/1/XX Dell sold a 1 month forward contract of EUR 1,000,000 to Chase. Based on this transaction: O Dell will pay EUR 1,000,000 to Chase in 1 month, and will receive USD 1.327.100 from Chase in 1 month Dell will pay USD 1.300.600 to Chase in 1 month and will receive EUR 1.320,100 from Chase in 1 month O Dell will pay EUR 1.000.000 to Chase in 1 month, and will receive USD 1,300,600 from Chase in 1 month O Dell will pay EUR 1.327.300 to Chuse in 1 month, and will receive USD 1,300,600 from Chase One in 1 month
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