The following quotes are given as follows: Tunisian Dinar(TND) 1.43100=1 USD and USD2.59713=1 OMR a)Determine the cross rate for TND/OMR? b)If you wanted to exchange OMR5000, how much TND you will be receiving against OMR5,000?
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The following quotes are given as follows: Tunisian Dinar(TND) 1.43100=1 USD and USD2.59713=1 OMR
a)Determine the cross rate for TND/OMR?
b)If you wanted to exchange OMR5000, how much TND you will be receiving against OMR5,000?
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- If euros sell for 1.50 (U.S.) per euro, what should dollars sell for in euros per dollar?Suppose you have the following spot exchange rates: USD/AUD 0.5300 AUD/EUR 1.6428 USD/EUR 0.8782 a) Calculate the US dollar profit (per 1 USD), if any, on a three-point arbitrage. b) Calculate AUD profit (per 1 AUD), if any, on a three-point arbitrage. c) How can you explain the answers in (1) and (2)?Argentino Peso (ARS) is quoted against USD at ARS 4.20100 = 1 USD and OMR against USD at OMR 0.385040 = 1 USD. (a) Determine the cross rate for ARS/OMR? (b) If you wanted to exchange ARS 20,000, how much OMR you will be receiving?
- Suppose a 1-year UK T-bill pays 2.14% and a 1-year Canadian T-bill pays 1.32%. The current spot exchange rate is 1 British pound (GBP) = 1.7244 Canadian dollar (CAD) and the 1-year forward exchange rate is 1 GBP = 1.6837 CAD. What arbitrage profit can an investor earn on an investment value of CAD 1 milion?A currency trader observes that in the spot exchange market, 1 U.S.dollar can be exchanged for 3.58 Israeli shekels or for 109 Japanese yen. What is the cross-exchange rate between the yen and the shekel; that is, how many yen would youreceive for every shekel exchanged?The TRY (Turkish lira) against USD spot exchange rate is TRY1.79620= 1 USD and 4 month’s forward rate is quoted as TYR 1.62310 = 1 USD. Determine which country is at forward premium and which is forward discount?
- The size of the peso contract is MXP500, 000, and the euro contract is on EUR125, 000. How much would be the gain of loss on MXP500, 000 unit contract and on EUR125, 000 unit contract if the change in the price of the currency unit is USD0.0001?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..Time Spot Exchange Rate (USD/AUD)0 0.351 0.402 0.453 0.504 0.555 0.606 0.657 0.708 0.759 0.8010 0.8511 0.9012 0.9513 1.0014 1.0515 1.10(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)?Currently, the GBP/USD rate is 1.5011 and the six-month forward exchange rate is 1.5261. The six-month interest rate is 7.6% per annum in the U.S. and 5.7% per annum in the U.K. Assume that you can borrow £1,000,000 or its equivalent in USD. How much do you make/lose if you borrow the foreign currency and invest locally? (USD, no cents)
- A currency trader observes that in the spot exchange market, 1 U.S. dollar can be exchanged for 3.5 Israeli shekels or for 112 Japanese yen. What is the cross-exchange rate between the yen and the shekel; that is, how many yen would you receive for every shekel exchanged? Do not round intermediate calculations. Round your answer to the nearest sen. Note: A sen is 1/100th of a yen.A currency trader observes that in the spot exchange market, 1 U.S. dollar can be exchanged for 3.6 Israeli shekels or for 107 Japanese yen. What is the cross-exchange rate between the yen and the shekel; that is, how many yen would you receive for every shekel exchanged? Do not round intermediate calculations. Round your answer to the nearest sen. Note: A sen is 1/100th of a yen. ____ yen per shekelAssume that the indirect quote is for 115 Japanese yen per U.S.dollar and that the direct quote is for 1.25 U.S. dollars per euro.What is the yen per euro exchange rate? (143.75 yen per euro)
