Suppose you observe the following direct spot quotations in New York and Toronto, respectively: USD 0.8000-50 and CAD 1.2500-60. What are the arbitrage pr()fits per USD I mn?
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Suppose you observe the following direct spot quotations in New York and Toronto,
respectively: USD 0.8000-50 and CAD 1.2500-60. What are the arbitrage pr()fits per USD I
mn?
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- The spot quote in New York for £ is $ 1.5912-1.6024 and for € is $ 1.1193-1.1226.Calculate the bid-ask spread percentage for euro PER pound sterling.Portfolio Ltd., a company based in Munich, has foreign trading assets in three major currencies, JPY, USD, and GBP. Bayes has a short position of JPY 720 million, a long position of USD 7.7 million, and a long position of GBP 6.3 million. Daily observations for the last 12 months show that the spot rates’ standard deviations are 0.5% for both EUR/JPY and EUR/GBP and 1% for EUR/USD. The correlation between EUR/JPY and EUR/GBP is +50%, between EUR/JPY and EUR/USD is +40%, and between EUR/USD and EUR/GBP is +60%. What is the risk (VaR) of the overall position over a 5-day interval at the 95% confidence level? Assume 0.90 GBP = 1 EUR, 1.1 USD = 1 EUR and 120 JPY = 1EURSpot rate: Given the following direct quotes, calculate the equivalent indirect quotes. A: $0.095/Mexican Pesos B: £0.75/€ C: Rupees 35.20/C$
- If national income Y = 10,500, disposable income Yd = 8,500 , consumption is C = 8,000, transfer payments TR = 150 and the budget deficit is BD = 200, what is the level of private domestic investment, I ? (please insert the round number without the Euro symbol)When translating Acceletron’s fi nancial statements into US dollars, Redline is least likelyto use an exchange rate of USD per SGD:A . 0.671.B . 0.588.C . 0.654.Assume the change in price level in Nepal is 50% and is 5% in USA. Calculate the change in spot exchange rates according to exact and approximately dynamic for of PP condition and interpret the result.
- Given the below quotes for the Japanese Yen and the Malaysian Ringgit, calculate the MYR/JPY cross rate. USD/JPY 110.38 USD/MYR 0.43.Given S(USD/AUD) = 0.7899, the price of a consumption basket in the US is$100 and the price of the same basket in Australia is $120. What is the real exchangerate and is it higher or lower than the nominal exchange rate?Suppose you long one Australian dollar call and one Australian dollarput with an exercise exchange rate of 0.75 (USD/AUD) and 0.65 (USD/AUD)respectively. The price of call and the price of put is USD0.04 and USD0.08,respectively.. (a) Compute the net call payo, net put payo and net combined payo.(b) Plot separately the Net Long call payo, the net long put payo and thenet combined payo.(c) Name and provide de nition of the shape of the combined payo obtainedfrom part (b)?
- The following are the prices in the foreign exchange market between the U.S. dollar and another local currency (LC). Spot $0.03112/LC 3-month forward $0.03117/LC 6-month forward $0.03118/LC What was the approximate discount or premium on a three-month forward for LC? A. 0.643% premium B. 0.013% premium C. 0.013% discount D. 0.643% discountCalculate the triangular arbitrage profit from the information provided if you have $1,000.000. Singapore dollar - US dollar spot exchange rate is 5$1.8/$, Pound - US dollar £133/5 and the SSE 1.12.The table lists foreign exchange rates for August 30, 2018. On that day, how many dollars would be required to purchase 1,000 units of each of the following: British pounds, Canadian dollars, EMU euros, Japanese yen, Mexican pesos, and Swedish kronas? Use the direct quotation for your calculations. Round your answers to the nearest cent. Sample Exchange Rates: Thursday, August 30, 2018 Direct Quotation:U.S. Dollars Required toBuy One Unit ofForeign Currency(1) Indirect Quotation:Number of Units ofForeign Currency perU.S. Dollar(2) Australian dollar 0.7264 1.3767 Brazilian real 0.2409 4.1504 British pound 1.3009 0.7687 Canadian dollar 0.7702 1.2984 Chinese yuan 0.1461 6.8448 Danish krone 0.1565 6.3889 EMU euro 1.1670 0.8569 Hungarian forint 0.00357015 280.10 Israeli shekel 0.2767 3.6136 Japanese yen 0.00901 110.99 Mexican peso 0.0523 19.1133 South African rand 0.0679 14.7205 Swedish krona 0.1096 9.1200 Swiss franc 1.0317 0.9693 Venezuelan bolivar…
