Q. You have 100,000 AUD to invest and are considering potential overseas investments. You are a strongly risk - averse investor and desire for the investment to have a minimal risk profile. a) Calculate the final AUD value of the given four potential investments. b) Which potential investment do you find the most appealing? c) Describe any significant complicating investment issues you should consider? Quotation Spot Bid Spot Ask Forward Bid Forward Ask AUD/USD 0.6579 0.6581 0.6650 0.6661 EUR/AUD 1.6473 1.6475 1.6810 1.6909 GBP/AUD 1.9211 1.9213 1.8959 1.9059 Note: You have been presented with outright forward quotations. Interest Rates: Country Australia U.S. Europe U.K. Interest Rates 4.35% p.a. 5.5% p.a. 4.5% p.a. 5.25% p.a.
Q. You have 100,000 AUD to invest and are considering potential overseas investments. You are a strongly risk - averse investor and desire for the investment to have a minimal risk profile. a) Calculate the final AUD value of the given four potential investments. b) Which potential investment do you find the most appealing? c) Describe any significant complicating investment issues you should consider? Quotation Spot Bid Spot Ask Forward Bid Forward Ask AUD/USD 0.6579 0.6581 0.6650 0.6661 EUR/AUD 1.6473 1.6475 1.6810 1.6909 GBP/AUD 1.9211 1.9213 1.8959 1.9059 Note: You have been presented with outright forward quotations. Interest Rates: Country Australia U.S. Europe U.K. Interest Rates 4.35% p.a. 5.5% p.a. 4.5% p.a. 5.25% p.a.
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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Transcribed Image Text:Q. You have 100,000 AUD to invest and are considering
potential overseas investments. You are a strongly risk -
averse investor and desire for the investment to have a
minimal risk profile. a) Calculate the final AUD value of
the given four potential investments. b) Which potential
investment do you find the most appealing? c) Describe
any significant complicating investment issues you
should consider?
Quotation
Spot Bid
Spot Ask
Forward Bid
Forward Ask
AUD/USD
0.6579
0.6581
0.6650
0.6661
EUR/AUD
1.6473
1.6475
1.6810
1.6909
GBP/AUD
1.9211
1.9213
1.8959
1.9059
Note: You have been presented with outright forward quotations.
Interest Rates:
Country
Australia
U.S.
Europe
U.K.
Interest Rates
4.35% p.a.
5.5% p.a.
4.5% p.a.
5.25% p.a.
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