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.

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
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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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