The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($ per SF). $ 0.8210 $ 0.8520 Spot 30-day forward 90-day forward 180-day forward a. Was the Swiss franc selling at a discount or premium in the forward market? Premium Discount $ 0.8548 $ 0.8595 b. What was the 30-day forward premium (or discount) percentage? Note: Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places. 30-day forward premium/discount 96

The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($ per SF). $ 0.8210 $ 0.8520 Spot 30-day forward 90-day forward 180-day forward a. Was the Swiss franc selling at a discount or premium in the forward market? Premium Discount $ 0.8548 $ 0.8595 b. What was the 30-day forward premium (or discount) percentage? Note: Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places. 30-day forward premium/discount 96

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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Complete the following table by finding the net price factor, single equivalent discount, trade discount (in dollars), and net price (in dollars). Round the net price factor and single equivalent discount to five decimal places, and the trade discount and net price to the nearest cent, when necessary. List Price: $650.70 Trade Discount Rate: 31/15/5
Treasury bills are currently paying 4.6 percent and the inflation rate is 1.9 percent. a. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Approximate real rate b. Exact real rate
The interest rate in US is 4% and in UK is 4.5%. The spot market rate is $1.77, and the forward rate is $1.72. The sterling pound is being sold at- A. Discount B. Premium C. At par D. None of the above
Suppose the spot price of a euro in dollars is $0.932. The U.S. interest rate for 90 days is 6.875% and the euro rate for 90 days is 4.450%. All interest calculations are done as rate times (#days/360). a. What is the rate for a 90-day forward contract on the euro? b. Suppose the euro forward contract is currently quoted at $0.95. What type of transaction(s) should an arbitrageur conduct to take advantage of the apparent mispricing Only typed answer
Instructions: Fill in the missing information. 1. Missing Dates: Encode the date in this format: mm/dd 2. Monetary values: Round-off the monetary figures to two decimal places Use 360 days=1 year in computing for interest Principal Interest Rate Date of Note Term Maturity Date Maturity Value Date of Discounting Discount Period Discount Rate Disount 55,000 13.50% 06/17 69 days ? ? 07/22 (?) days 13.70% ? Net proceeds Accrued Interest Carrying Amount Gain/Loss on Discounting ? ? ? ? Thank you for helping me.
If the spot rate of the Israeli shekel is 5.51 shekels per dollar and the 180-day forward rate is 5.76 shekels per dollar, then the forward rate for the Israeli shekel is selling at a(n) to the spot rate. a. 4.99% discount O b. 4.54% discount O c. 5.58% discount O d. 3.72% premium e. 3.68% premium
An item that had a list price of $1446 was subject to trade What is the single discounts of 13%, 11% and 9%. equivalent discount rate (SEDR) that is equal to the discount series? Do not include the percent symbol and round your answer to 2 decimal places.
Use the information below to answer the questions that follow. Japanese yen Japanese yen 6 month Australian dollar Australian dollar 3 month U.S. $ EQUIVALENT .00916 .00899 .7748 .7751 a. Yen b. Australian dollar c. Dollar relative to yen d. Dollar relative to A$ CURRENCY PER U.S. $ 109.20 111.21 1.2907 1.2902 a. Is the yen selling at a premium or a discount? b. Is the Australian dollar selling at a premium or a discount? c. Do you expect the value of the dollar to increase or decrease relative to the value of the yen? d. Do you expect the value of the dollar to increase or decrease relative to the value of the Australian dollar?
Bid/Ask on Dollar/Euro Forwards. Use the following spot and forward bid-ask rates for the U.S. dollar/euro (US$/€) from December 10, 2010, to answer the following questions: a. What is the mid-rate for each maturity? b. What is the annual forward premium for all maturities? (Click on the icon to import the table into a spreadsheet.) Period spot 1 month 2 months 3 months 6 months 12 months Bid Rate 1.3234 1.3233 1.3231 1.3227 1.3218 1.3197 Ask Rate D 1.3235 1.3234 1.3232 1.3229 1.3221 1.3201
The graph below shows contingency net profits for a buyer of a Swiss franc (CHF) straddle, in which the exercise price is $1.09 per CHF, the call and put premiums are $0.03 and $0.04 per CHF, respectively. Explain why the buyer's net profit per unit is V-shaped, and why his break-even points are at the future exchange rates of $1.02 and$1.16. Net profit per unit S1.09 $1.02 $1.16 S1.09 Future spot rate -$0.07
1) The difference between direct and indirect quotes: What is a direct pound for euro quote? What is a direct dollar quote for pound? What is an indirect dollar quote for yen? What is the indirect Swiss franc for pound quote? 2) Nominal annualized realized appreciation: Two months ago the price of a dollar in Tokyo was 95.6789. Today it is 93.5432. What is annualized realized yen appreciation? Four months ago direct dollar quote for pound was 1.2468. Today it is 1.1357. What is annualized realized pound appreciation? 3) Appreciation vs depreciation: How much did the dollar appreciate if the euro depreciated 3.5778% against the dollar? 4) Buying and selling For-Ex with bid-as quotes: How many dollars do you need to buy 3 million euros if the indirect dollar quote for euro is 0.8972-13? How many Swiss francs will you get from one billion yen if the price of Swiss franc in Tokyo is 101.3050-15? How many dollars will you get from 6 million pounds if the direct dollar quote for…
Calculate the forward discount or premium for the following spot and three-month forward rates: (a) Spot Rate = $2.00/£1 and Forward Rate = $2.01/£1 (b) Spot Rate = $2.00/£1 and Forward Rate = $1.96/£1

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