Over a given period, market forces have moved the exchange rate between US Dollar and Naira ($/), from 0.0120 to 0.0100. Using the information, today, the spot rate on Japanese Yen is $0.08000 and 180 days forward Yen are priced at $ 0.008250. What is the annualised forward premium? A . 6.26%. B. 6.24%. C . 6.25%. D. 6.23%.
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- Let the U.S. dollar-yen spot rate be ¥120/$. Also, let the 180-day forward exchange rate be ¥124.8/$. Then the yen is selling at a per annum _________ of ___________. a . discount; 8.00% b . discount; 1.57% c . premium; 8.00% d . premium; 6.30%b. What is the annual forward premium on the yen for all maturities? (Assume that the U.S. dollar is the home currency.) The annual forward premium is: Forward premium= The annual forward premium for all maturities is calculated below: Period Spot rateMid-Rate -Forward rateMid-Rate Forward rateMid-Rate Spot 1 month 2 months 3 months 6 months 12 months 24 months Days Forward 0 30 60 90 180 380 720 Bid Rate \/$ 85.60 86.20 86.03 85.57 84.43 84.17 83.11 x(360/Days) Ask Rate \/$ 85.65 86.24 86.08 85.61 84.46 84.21 83.16 Forward Premium -8.281 % -2.998 0.164 2.795 1.705 1.498If the spot rate is NZ$0.50/S and the forward rate is NZS0.55/S. The spot exchange rate and the forward rate are C$1.03/$ and C$1.07/S. Compute the percentage change in the NZS/C$ during this period. a. -5.89% b. 5.89% c. -5.56% d. 5.56%
- The following table shows the midmarket (i.e., average of the bid and offer) for the current YEN/GBP spot exchange rate as well as for GBP and YEN 270-day LIBOR (annualized): Spot (YEN/GBP) 270-day LIBOR (GBP) 270-DAY LIBOR (YEN) 1.2089 5.25% 1.25% 1. What is the forward premium or discount for a 270-day forward contract for YEN/GBP?The current USD/EUR exchange rate is [de] dollar per euro. The one-year forward exchange rate is [fe]. The one-year USD interest rate is [rus]% p.a. semiannually compounded. Estimate the one-year EUR interest rate (p.a. semiannually compounded, stated in percent). Inputs: de, fe, rus = 1.85, 1.75, 1.31 Tip: Use the CIPSuppose the spot and three-month forward rates for the yen are ¥79.45 and ¥78.84, respectively. What would you estimate is the difference between the annual inflation rates of the United States and Japan? (A negative answer should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual inflation rate differential %
- The current us dollar yen spot rate is 125 yen/$. if the 90 day forward exchange rate is 127 yen/$ then the yen is selling at a per annum ________ of ________. a. premium; 1.57% b. premium; 6.3% c. discount ;1.57% d. discount 6.3%The following are the prices in the foreign exchange market between the U.S. dollar and another local currency (LC). Spot $0.03112/LC 3-month forward $0.03117/LC 6-month forward $0.03118/LC What was the approximate discount or premium on a three-month forward for LC? A. 0.643% premium B. 0.013% premium C. 0.013% discount D. 0.643% discountSuppose you have the following spot exchange rates: USD/AUD 0.5300 AUD/EUR 1.6428 USD/EUR 0.8782 a) Calculate the US dollar profit (per 1 USD), if any, on a three-point arbitrage. b) Calculate AUD profit (per 1 AUD), if any, on a three-point arbitrage. c) How can you explain the answers in (1) and (2)?
- Given the following data: R = $1.00¥115 %D F = $1.00¥140 ius. = 8% U.S. If the interest parity condition is expected to hold, interest rates in Japan (i lapan) should equal % (enter your answer as a percentage rounded to two decimal places). Given the following data: E, = ¥110 = $1.00 E41 = ¥140 = $1.00 {one year later} %3D İJapan = 5% annually İu.s. = 6% annually Calculate the future value of a $1,000 investment. If the $1000 is invested in the U.S., the future value is $ (Round your response to two decimal places.)The following are the spot and the swap forward rates of the AUD/USD Spot 1.2500–1.2550 One-month 40–20 This means that the US dollar is selling at a forward discount. the US dollar is selling at a forward premium. the Australian dollar is selling at a forward discount. after allowing for transaction costs, both currencies sell at par.1) Assume the following exchange rates are indirect quotes, what are the equivalent direct quotes INDIRECT QUOTE DIRECT QUOTE $1=7.15 MXN (spot) ______________ $1=10.12 MXN (forward -30 day) ______________ $1=1.21 EUR _________.83_____ $1=120 JPY _________.0083_____ $1=1.7 CHF ___________.58___ 2) If you were comparing the price of hotel rooms in the above countries, the following would be the price in US dollars: 750 MXN (Spot) = _____________ 325 CHF = ________552.5_____ 650 EUR = _________786.5____ 40,000 JPY = ________4,800,000_____ 3) Suppose the Peso devalued by 15%, the hotel room in Mexico would now sell for __________Mexican Pesos which would equal ___________US dollars. 4) Suppose you exported something from Mexico to the US and were quoted a price (payable immediately) of 20,000 Pesos. What would your receipt in US dollars be? _____________. 5) Suppose you exported something from Mexico to the US and the payment…