Bank Quotations Bid Ask Bid Ask British pounds $1.9712 $1.9717 £0.5072 £0.5073 Euros $1.4738 $1.4742 €0.6783 €0.6785 Using the table above, what is the ask price of euro in terms of pounds? Multiple Choice €1.3371/£ €1.3378/£ £0.7475/€ £0.7479/€..
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Bank Quotations Bid Ask Bid Ask
British pounds $1.9712 $1.9717 £0.5072 £0.5073
Euros $1.4738 $1.4742 €0.6783 €0.6785
Using the table above, what is the ask price of euro in terms of pounds?
Multiple Choice
€1.3371/£
€1.3378/£
£0.7475/€
£0.7479/€..
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- DISCUSSION QUESTIONS Recreate Table 17.1 for the following currencies: Australian dollar, British pound, Canadian dollar, Chinese yuan, Euro, Japanese yen, and Swiss franc. Be sure to show both the direct quotations and indirect quotations. TABLE 17.1 Sample Exchange Rates: Friday, May 29, 2015 Direct Quotation: U.S. Dollars Required to Buy One Unit of Foreign Currency (1) Indirect Quotation: Number of Units of Foreign Currency per U.S. Dollar (2) Australian dollar 0.7644 1.3082 Brazilian real 0.3145 3.1793 British pound 1.5290 0.6540 Canadian dollar 0.8030 1.2454 Chinese yuan 0.1613 6.2004 Danish krone 0.1473 6.788 EMU euro 1.0993 0.9097 Hungarian forint 0.00355404 281.37 Israeli shekel 0.2586 3.8673 Japanese yen 0.00806 124.14 Mexican peso 0.0650 15.3776 South African rand 0.0823 12.1557 Swedish krona 0.1174 8.5195 Swiss franc 1.0636 0.9402 Venezuelan bolivar fuerte 0.1587289 6.3001 Nate: Column 2 equals 1.0 divided by column 1. However, rounding differences do occur. Source: Adapted from The Wall Street Journal (online.wsj.com). June 1, 2015.American Terms European Terms Bank Quotations Bid Ask Bid Ask British pounds $ 1.9714 $ 1.9719 £ 0.5071 £ 0.5072 Euros $ 1.4740 $ 1.4745 € 0.6782 € 0.6784 Using the table above, what is the ask price of euro in terms of pounds (Ask Cross rate of £/€)?Q2-19 Consider the following $/£ exchange rates and quantities of pounds demanded by US buyers.$/£ pounds demanded$2.50/£1 £1,000$2.00/£1 £1,500$1.50/£1 £1,800The arc elasticity of demand for pounds between the $2.50/£1 exchange rate and the $2.00/£1 exchange rate is (ignoring the negative sign) Select one: a. 0.56. b. 1.33. c. 1.80. d. 2.50.
- 4. Use the table to complete following questions: Canadian Dollar: Spot and Forward (CS/S) Euro: Spot and forward (S /€) Mid rates Bid Ask Mid rates Bid Ask spot 1.2645 1.2639 1.2651 1.2390 1.2387 1.2393 Forward 3-week 23 27 19 153-month 135 128 155 146 7a. How much $100 will cost you in Canadian Dollar and Euro? (Hint: you are buying USD)..Assume that a bank bid rate on Swiss francs i 0.25 British pound andits ask rate is 0.26 British pound. Its bid ask percentage spread is: O a 417% Ob. 385% Oc 4% O d 426%EUR/USD 0.9395/0.9681 AUD/USD 1.7624/1.7864 JPY/AUD 65.91/67.71 1. What is the cross OFFER/ASK rate for JPY/USD? 2. What is the cross BID rate for EUR/AUD? please explain step by step as i dont understand the concept
- Compute for the bank's income if a client will purchase USD375,000 @ P50.76 = $1 based on P50.30 benchmark or based rate. a. P172,500 b. P17,500 c. P1,725 d. P17,250Assume the bid rate of an Yen dollar is $ 1.8 while the ask rate is $ 3.5 at Arab Bank.Assume the bid rate of an Yen dollar is $3.4 while the ask rate is $5.7 at Palestine Bank. Given this information, what would be your gain if you use $8876.7 and execute locational arbitrage? =8876.713.5^ * 3.4b =8876.7/5.7^ * 3.5c =8876.7/3.4^ * 1.8d = 8876.7 /3.5^ * 5.7Suppose a bank provides the following quotes: Bid 1.2567 CAD per U.S. Dollar and Ask 1.2682 CAD per U.S. Dollar Suppose you would like to buy Canadian Dollars and sell U.S. Dollars. Given the quotes above, what rate would you receive? Group of answer choices 0.0115 CAD per USD 2.5249 CAD per USD 1.2682 CAD per USD 1.2567 CAD per USD
- 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/JPY18-The OMR rate per US Dollar is quoted as OMR 2.4500 - OMR 2.5000 = $1. Company A wants to buy dollars in exchange for OMR. What rate will the bank offer company A? a. Bank offer OMR 2.5000/$ b. None of the options c. Bank offer OMR 2.5500% d. Bank offer OMR 2.4500/Q3 GT Bank Ghana Limited quotes JPY/EUR 155-165, and GCB Bank quotes EUR/JPY 0.0059-0.0063.Are these quotes identical? If not, is there an opportunity for arbitrage?If there is an opportunity for arbitrage, how would one profit from it?Given the bid-ask quotes for jpy/gbp 220-240, at what rate will:Mr. Agbo purchase gbp? Mr. Agbo sell gbp? Mr. Debrah purchase jpy? Mr. Kwaku sell jpy? Q4 An analyst holds a set of forward contracts on euro, against usd (=hc). Below are the forward prices in the contract; the current forward prices (if available) or at least the current spot rate and interest rates (if no forward is available for this time to maturity). Compute the fair value of the contracts.(a) Purchased: eur 1m 60 days (remaining). Historic rate: 1.350; current rate for same date: 1.500; risk-free rates (simple per annum): 3% in usd, 4% in euro. (b) Purchased: eur 2.5m 75 days (remaining). Historic rate: 1.300; current spot rate: 1.5025; risk-free rates (simple per annum): 3% in usd,…
