Required a)Convert the following indirect quotes to direct quotes. I. Euro: €1.22/$ (indirect quote) II. Russia: Rub 30/$ (indirect quote) III. Canada: C$ 1.39/$ (indirect quote) IV. Denmark: DKr6.08/$ (indirect quote) b)Convert the following direct quotes to indirect quotes. I. Euro: $ 0.865/€ (direct quote) II. Russia: $ 0.050/ Rub (direct quote) III. Canada: $ 0.85/C$ (direct quote) IV. Denmark: $ 0.608/ DKr (direct quote) c)Define the spot transaction and outright forward transaction.

Required a)Convert the following indirect quotes to direct quotes. I. Euro: €1.22/$ (indirect quote) II. Russia: Rub 30/$ (indirect quote) III. Canada: C$ 1.39/$ (indirect quote) IV. Denmark: DKr6.08/$ (indirect quote) b)Convert the following direct quotes to indirect quotes. I. Euro: $ 0.865/€ (direct quote) II. Russia: $ 0.050/ Rub (direct quote) III. Canada: $ 0.85/C$ (direct quote) IV. Denmark: $ 0.608/ DKr (direct quote) c)Define the spot transaction and outright forward transaction.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter3: International Financial Markets

Section: Chapter Questions

Problem 1IEE

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Question

subject:international finance

Most foreign currencies in the world are stated in terms of the number of units of foreign currency needed to buy one dollar

Required

a)Convert the following indirect quotes to direct quotes.

I. Euro: €1.22/$ (indirect quote)

II. Russia: Rub 30/$ (indirect quote)

III. Canada: C$ 1.39/$ (indirect quote)

IV. Denmark: DKr6.08/$ (indirect quote)

b)Convert the following direct quotes to indirect quotes.

I. Euro: $ 0.865/€ (direct quote)

II. Russia: $ 0.050/ Rub (direct quote)

III. Canada: $ 0.85/C$ (direct quote)

IV. Denmark: $ 0.608/ DKr (direct quote)

c)Define the spot transaction and outright forward transaction.

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