Question 1 As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on AUD. Current market rates are as follows: • Spot ● ● ¥101.37-85/U.S.$ 1 A$1.2924-44/U.S.$ 1 30-day 15-13 20-26 a. What bid and ask yen cross rates would you quote on spot Australian dollars? b. What outright yen cross rates would you quote on 30-day forward Australian dollars? • c. What is the forward premium or discount on buying 30-day Australian dollars against yen delivery?

Question 1 As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on AUD. Current market rates are as follows: • Spot ● ● ¥101.37-85/U.S.$ 1 A$1.2924-44/U.S.$ 1 30-day 15-13 20-26 a. What bid and ask yen cross rates would you quote on spot Australian dollars? b. What outright yen cross rates would you quote on 30-day forward Australian dollars? • c. What is the forward premium or discount on buying 30-day Australian dollars against yen delivery?

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter19: Multinational Financial Management

Section: Chapter Questions

Problem 5P

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