Q5: Current spot rates are as follows:   USD/CHF 1.5384/89 USD/SGD 2.3895/05 EUR/USD 0.9678/83 AUD/USD 0.5438/43 What is the two-way price for CHF/SGD? On which side of this price would the customer sell SGD? What is the two-way price for EUR/AUD? On which side of this price would the customer buy EUR? What is the two-way price for EUR/CHF? On which side of this price would the customer buy CHF?

Q: "If the discount rate on 3-month commercial paper is 4.9% while the yield on 3-month CDs is 5%, the…

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Q: The quotes listed are indirect quotes of the $. A direct quote of the $ per € would be $ The forward…

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Q: 1. Please calculate it according to Closed Mid point.  3.  Please calculate it according to mid…

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Q: NET PROFIT PER -0.01 -0.02 -0.03 -0.04 O O -0.05 + 1.38 1.40 1.42 1.44 1.46 1.48 1.50 1.52 1.54 1.56…

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A: According interest parity concept forward rate should be in equilibrium with interest rates.

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A: The Black-Scholes model is a widely used mathematical model for pricing financial derivatives, such…

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Q: Calculate the trade discount (in $). Round your answer to the nearest cent.

A: Information Provided: List price = $365 Trade discount rate = 7%

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Q: Spot and forward rates (LO21-2) 1. The Wall Street Journal reported the following spot and forward…

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Q: None

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A: Todays Spot rate0.4517Brazillian real value =  0.42550.42020.41940.45020.45980.4517

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Q: i sold a call option with an exercise price of $1.20/euro. the premium was $0.02/euro. what is my…

A: Buyer of Call option will exercise the option if Price is higher than the Exercise Price. For seller…

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.