(b) A CD/$ bank trader is currently quoting a small figure bid-ask of 35-40, when the rest of the market is trading at CD1.3436-CD1.3441. What is implied about the trader’s beliefs by his prices? (c) The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. Calculate the cross exchange rate between AUD/SF

(b) A CD/$ bank trader is currently quoting a small figure bid-ask of 35-40, when the rest of the market is trading at CD1.3436-CD1.3441. What is implied about the trader’s beliefs by his prices? (c) The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. Calculate the cross exchange rate between AUD/SF

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter4: Exchange Rate Determination

Section: Chapter Questions

Problem 27QA

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