Using the following quotations: HF/USD 1.1424/1.1448 SD/CAD 1.3325/1.3372 (a) Create a cross rate between the Swiss Franc and the Canadian Dollar. Present your quotation in direct form as the dealer's buy and sell prices for the Swiss Franc (4 decimal places). Show all workings to obtain full marks. (b) What is the size of the spread of the cross rate as a percentage of the ask price?

Using the following quotations: HF/USD 1.1424/1.1448 SD/CAD 1.3325/1.3372 (a) Create a cross rate between the Swiss Franc and the Canadian Dollar. Present your quotation in direct form as the dealer's buy and sell prices for the Swiss Franc (4 decimal places). Show all workings to obtain full marks. (b) What is the size of the spread of the cross rate as a percentage of the ask price?

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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A bank in London, Ontario charges 1.75% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.3973. a. How many Canadian dollars will you receive from the bank if you sell US$1,310? Round to the nearest cent b. How much commission will you pay the bank for this transaction?
Use the information below to answer the following questions. U.S. $ EQUIVALENT CURRENCY PER U.S. $ Polish Zloty .2989 3.3456 Euro 1.2379 .8078 Mexican Peso .0752 13.2993 Swiss Franc 1.0299 .9710 Chilean Peso .002071 482.80 New Zealand Dollar .8083 1.2371 Singapore Dollar .8007 1.2489 a. If you have $280, how many Polish zloty can you get? (Do not include the Polish zloty sign (Z). Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much is one euro worth in U.S. dollars? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) c. If you have 4.60 million euros, how many dollars do you have? (Do not round intermediate calculations and round your answer to…
According to this morning's The National Post, you can exchange $1 for $0.77 U.S. in three months. Thus, the ________ is $1.30 Canadian. A. Backward rate. B. Forward rate. C. Futures rate. D. Triangle rate. E. Spot rate.
Which option shows the presentation currency and denomination of the financial statements? a. USD in Millions b. USD in Whole Dollars c. USD in Thousands
Two banks give the following quotes on the euro at the same time: Citibank NY $1.2581-65/€ Barclays London: $1.2545-22/€. The arbitrage profit from these quotes is $________/€ (Keep four decimal places.)
The following rates are available to you. (You may either buy or sell at these rates). Assume you have a $1,000,000 to trade. Quote for Japanese Yen US $ quote for British Pound Yen quote for British Pound Given this information, is triangular currency arbitrage possible? BOA Barclays Bank Daiwa Bank A. Yes, start by selling US dollars at Barclays Bank OB. Yes, start by selling British pounds at Daiwa Bank No, triangular currency arbitrage is not possible. O D. Yes, start by selling US dollars at BOA O C. US$ 0.009472/ US$ 1.3670/£ 142.45/£
Review the charts below to calculate the price of the Swiss franc in terms of the Japanese Yen. 130.88 142.75 121.69 JPY BGN Curncy 12/30/2021 - 12/30/2022 BGN Last Px Local CCY 10 3D 1M 6M YTD 1Y 5Y Max Daily ▼ WH ▾ Table Last Price 131.8042 High on 10/20/22 150.15 Average 131.4248 -Low on 01/21/22 113.68 Dec Jan Feb Last Price 0.9233 T High on 11/03/22 1.0133 → Average 0.9546 Low on 01/13/22 0.9111 Jan Suggested Charts 96) Actions ▾ 97) Edit Feb Mar Apr CHF BGN Curncy 4 Suggested Charts 96) Actions 97) Edit 12/30/2021 - 12/30/2022 BGN Last Px 1D 3D 1M 6M YTD 1Y SY Max Daily Mar May Apr Local CCY 14 May Track Annotate News Q, Zoom Mov Avgs Key Events Jun 2022 Jun Jul Mov Avgs Key Events Table Track Annotate News Q Zoom 2022 Aug Jul Aug man Sep + Related Data ▾ Sep Oct + Related Data ▾ Oct Add Data Nov Add Data Nov << Edit Chart Dec Line Chart Dec 150 145 140 135 131.8042 130 125 120 115 Line Chart << Edit Chart 1.02 1.00 0.98 0.96 0.94 0.9233 0.92
A bank in London, Ontario has a buying rate of CHF 1 = C$1.3547. If the exchange rate is CHF 1 = C$1.3841, calculate the rate of commission that the bank charges.
You observed the following quotes between Canadian dollars (C$), euros (€) and Swiss francs (CHF) on 3/1/XX: C$1=€.90, C$.70/CHF On 3/2/XX, quotes for each currency were as follows: C$1.15-€1, CS.75/CHF You converted 600,000 Swiss francs into euros on 3/1. On 3/2 you converted your euros back to Swiss francs. How many francs would you have on 3/27 Round intermediate steps to four decimals. O 715,555.56 665357.14 246,521.74 579,587.4
For the below questions use these rates that your bank has quoted you: EUR/USD: 1.0175 – 1.0180 GBP/USD: 1.2065 – 1.2070 USD/CAD: 1.2930 – 1.2935 USD/JPY: 134.85 – 134.90 AUD/USD: .6905 - .6910 Calculate the following crosses: EUR/GBP EUR/JPY AUD/JPY GBP/CAD GBP/JPY CAD/JPY
You are given the following quotes: U.S. dollar/Mexican Peso = 0.2501 U.S. dollar/Australian Dollar = 0.7448 U.S dollar/Chinese Yuan = 0.1352 What is the Chinese Yuan/Australian Dollar cross rate?
Suppose that the quote for Euro is 1.1120-44/EUR. If you want to buy 259, which of the following is closest to that amount of Euros that you will need to pay? O a. EUR 232.41 O b. EUR 288.32 O. EUR 232.91 O d. EUR 288.01 O e. EUR 288.63

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