The quote in Tokyo Exchange market for OMR is given as JPY 275.639 = 1 OMR as bid and JPY 275.763 = 1 OMR as ask. The yen is quoted in Oman market at OMR 0.0036271 = 1 JPY bid and OMR 0.0036842 = 1 JPY ask. Calculate the bid-ask spread as a percentage of the bid price from the Oman and Japanese perspective.
Q: Hijab Alisha company has financial data for 2021 as follows: Calculate the firm's earnings available…
A: Earnings available to common shareholders is the company's net profit minus the amount of preferred…
Q: following table contains data to calculate forward rates using pure expectations theory. a) Find the…
A: Solved in excel using forward rate formulas
Q: Sam is negotiating to purchase an annuity of $50 000 p.a. for 10 years. Funds currently earn 6% p.a.…
A: Present value of annuity due= (PMT/rate)*(1-(1+rate)^-Years)*(1+Rate) PMT = amount of annuity rate =…
Q: The Nobel Prize-winning Modigliani & Miller Theory states that a firm’s capital structure does not…
A: Modigliani & Miller Theory : This theory was founded by Merton Miller & Franco Modigliani…
Q: (9) At the end of 2021 you have computed the value of a deposit of 10000 lei constituted in January…
A: Hi, Thanks for the Question. Since, you asked multiple question, we will answer first question for…
Q: Q.4[q] Evalinte uhether the follouwing poject is feasible or not Net Cash Floe CRs) 55,000 Year…
A: CF0 = - 55000 CF1 = 15000 CF2 = 20000 CF3 = 25000 CF4 = 20000 CF5 = 30000 r = 10% n = 5 years
Q: ) Consider two stocks. Stock 1 always sells for $10 or $20. If stock 1 is selling for $10 today,…
A: The stock prices are the current highest worth that someone is willing to purchase the part of the…
Q: An Omani businessman has just completed transactions in UAE. He is now holding AED 880,000 and…
A: A bid rate is a rate a forex dealer is willing to pay to buy the base currency. An ask rate is a…
Q: sales volume.3- To what extent can the sales volume be increased if the company wants to achieve net…
A: You have asked specifically to compute the answers for point 3 and 4 , the solutions of which are…
Q: Calculate the expected accounting rate of return on averag asset, using straight line depreciation…
A: Accounting Rate of Return: The formula for the accounting rate of return helps in determining the…
Q: c. CIMB Islamic Bank Bhd had purchased Negotiable Islamic Debt Certificate (NIDC) with a nominal…
A: Note: This post has two distinct questions. The first has been answered below
Q: A man borrowed an amount of P150,600 to bank that offers an interest rate of 5.36% compounded…
A: Given, Loan borrowed is P150,600 Interest rate is 5.36% compounded annually
Q: Discuss the need for automobile insurance as means of protecting the yourself and the public in the…
A: Automobile insurance is an insurance contract that mitigates the risk for the car owner in case of…
Q: A mortgage of P 80 000 is to be paid by annual payment over a period of 10 years. If the interest…
A: Mortgage amount (MV) = P 80,000 Interest rate (r) = 15.8% Number of annual payments (n) = 10
Q: Shane buys a 14-year, $150,500, zero-coupon bond with an annual YTM of 4.32%. If he sells the bond…
A: A Bond refers to an instrument that represents the loan being made by the investor to the company…
Q: What is the present value (i.e., price) today of a bond that will pay its owner…
A: Maturity value (MV) = $1,000,000 Period (n) = 5 Years Discount rate (r) = 4%
Q: A loan was made 3 years and 8 months ago at 7.5% simple interest. The principal amount of the loan…
A: Here, Simple interest = 7.5% Time = 3 years and 8 months Interest amount = P620 To Find: 1. Discount…
Q: 1. The VAT payable for January is? 2. The VAT payable for February is 3. The VAT payable for March…
A: Deducting or reducing tax credit from tax collected and levied during the payment period, VAT is…
Q: Problem: Mr. Hanz would like to save 4,500 at the end of each month for 6 months in a fund that…
A:
Q: An installment note payable for a principal amount of $48,000 at 6% interest requires Lawson Company…
A: Amortized Loan: Amortized loan is a type of loan in which the borrower would pay periodic payments…
Q: 1. Determine the earnings before taxes for years 1 through 5 2. Compute the OCF for years 1 through…
A: Working Note #1 Calculation of depreciation: Year 1 2 3 4 5 Opening Balance ($) 80000000…
Q: Fed announced a decrease interest rate and let's assume it's mainly driven by real interest rate.…
A: SML stands for Security Market Line which reflects the graphical version of CAPM. The more risk a…
Q: Mrs. Carter deposits P 100 in the bank at the end of each month. If the bank pays 6 % per year…
A: Monthly deposit (P) = P100 Interest rate = 6% e = 2.7182818284590452353602874713527 Monthly interest…
Q: sports clotnes, is considering adding a line of skirts and jackets. The production would take place…
A: Given,
Q: Piracy, however, is the direct copy of a company’s product and is unethical. Piracy is most…
A: American Marketing Association (AMA) in its code of conduct defines the standard of behavior that…
Q: 2. For each of the following situation, identify whether a bond would be considered a premium bond,…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: /ou are interested in purchasing a computer from the available three options. С-1 C-2 С-3 First Cost…
A: Incremental B/C analysis is known as Benefit and costs analysis where a number of options are…
Q: If you have a 12-year annuity paying $349 monthly beginning in 2 years when interest is 3.53%…
A: Annuity Due refers to the annuity wherein the payment begins at the beginning of each period. The…
Q: Unit VIII question 12
A: Answer- Working Note - Computation of capital cost of hoist - Particulars Amount Purchase…
Q: You have invested your annual bonus in a one year fixed deposit at Alpha Bank which offers a nominal…
A: The difference between simple interest and compound interest is simple interest only calculates…
Q: What is McGonnigal’s degree of operating leverage at a sales level of $45 million? Round your answer…
A: Financial leverage means the degree by which a company uses fixed income securities or outside…
Q: At the end of 2021, PT. Wardah International announced a gross profit of $1 million. The costs…
A: earnings available for common stockholders = Net income - preferred Dividend
Q: value of the above securities.
A: Bond refers to the type of investment securities in which an investor lends money to the government…
Q: w is information about three $10000 par value bonds, each of which pays coupon semiannually. The…
A: Price of bond is the present value of coupon payment and present value of par value considering the…
Q: 5. Solve for the following assuming that uncovered interest rate parity holds. a. is= .03, ie -.02…
A: The uncovered interest rate parity states that the difference in the interest rates between the two…
Q: Q-1: Aaron Ramos bought 300 shares of Wells Fargo stock at $32 and paid a $19.95 commission. A…
A: Rate of yield is the income percentage as a function of price or cost. Given: Number of shares =…
Q: Replacing old equipment at an immediate cost of $50,000 and an additional outlay of $15,000 six…
A: Initial cost = $50,000 Additional cost in six years = $15,000 Annual savings for 7 years = $11,000…
Q: Classify the financial problem. Assume a 4% interest rate compounded annually. Find the value of a…
A: Future value deals with the value of money at a future date which is different from the value today…
Q: Consider a 2-year European put option with a strike price of $52 on a stock whose current price is…
A: The pre-determined price at which the underlying asset can be bought or sold is known strike price.…
Q: Hypothetics Inc. has just paid the annual dividend to shareholders based on $5 earnings per share…
A: Last EPS = $5 Plowback ratio = 40% Payout ratio = 100%-Plowback ratio =…
Q: A savvy investor paid $7000 for a 20 year $10.000 mortgage bond that had a bond iterest ate of per…
A: Rate of return is defined as the net gain or net loss of an investment over the particular period of…
Q: Logan inherited $8,000. He split the money and placed EQUAL amounts in the two accounts below.…
A: The interest on interest is known as compound interest. The interest calculated as per the…
Q: shareholders be the owners
A: A firm refers to a profit-making organization such as a sole proprietorship, partnership, company,…
Q: X-treme Vitamin Company is considering two investments, both of which cost $20,000. The cash flows…
A: The payback period is the amount of time required to break even, i.e., to recover the initial…
Q: The difference in yield between a credit-risky bond and a credit-risk-free bond of similar maturity…
A: Yields are income from investments such as: B. Benefits from holding securities. Yields are usually…
Q: Kyle wants $20,000 in 4 years. He can invest in a fund that earns 6% and compounds quarterly. How…
A: N - Number of Compounding Periods = 4 Years * 4 quarters = 16 I% - Annual Interest (as a %) = 6%…
Q: Suppose that you want to create a "college fund" for your newborn child and place $300 in a bank…
A: Answer - Future Value Formula - = P [ (1+i)n - 1] / I Given, P = 300 i = 0.07 n = 20 years…
Q: On July 5, a stock index futures contract with expiration on December 20 settles at 357.24. On the…
A: The Actual future price for Dec 20 on July 5= 357.24 Spot Price on July 5 = 361.54 Each index point…
Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum return…
A: Given: Tax rate 30% Particulars Debt Common shares Preferred shares Coupon rate/Dividend…
Q: The present value of Alternative 1 is S. (Round the final answer to the nearest dollar as needed.…
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
Step by step
Solved in 2 steps
- The Hong Kong dollar is quoted as HKD/US$=7.7438-7.7582 and the Colombian peso is quoted as COP/US$=3,481.0191-3,485.9599. What is the implicit quotation (bid and ask prices) of COP/HKDThe 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.Calculate the possible rate for buying SGD (Singapore Dollar) in exchange for selling JPY as well as the possible rate for selling SGD in exchange for buying JPY. Assume that the exchange rates (Bid – Offered rate) are quoted as follows: USD 1 = JPY 104.50-104.60, USD 1 = SGD 1.3485 – 1.3490.
- The following information is available to a Zambian trader: i. Percentage spread given for Zambian kwacha per US dollar is 0.1%. The ask rate for Zambian kwacha per C$ dollar is K9.526 ii. Canadian dollars per US dollar C$ 1.2780/US$ iii. Kwacha per US dollar K8.524/US$ a) Calculate the bid rate b) Determine if there is any opportunity for arbitration c) Explain How a Zambian trader with K1, 200,000 can use this amount to benefit from the inter market arbitrage? What will be the profit or loss for the trader?In each of the following cases, calculate the price of one share of the foreign stock measured in United States dollars (US$). a. A Belgian stock priced at 103.1 euros when the exchange rate is 1.0787 US$/ (i.e., each euro is worth $1.0787). b. A Swiss stock priced at 92.5 Swiss francs (Sf) when the exchange rate is 1.0385 US$/Sf. c. A Japanese stock priced at 1,386 yen (¥) when the exchange rate is113.9988 ¥/US$. Question content area bottom Part 1 a. The Belgian stock priced in U.S. dollars is $111.14 (Round to the nearest cent b. The Swiss stock priced in U.S. dollars is $................ (Round to the nearest cent.) c. The Japanese stock priced in U.S. dollars is $.......... (Round to the nearest cent.)The foreign exchange department of Bank of America has a bid quote on Canadian dollars (C$) of C$0.9720/$. If the bank typically tries to make a bid-ask spread of 0.5 percent on these foreign exchange transactions, what will the ask rate have to be? (Round answer to 2 decimal places, e.g. 52.75.) The ask rate has to be C$ enter the ask rate rounded to 2 decimal places /$
- A New Zealand company needs to make a payment of 600,000 Thai Baht (THB). To do this it needs to convert New Zealand dollars (NZD) to THB and it has received the following exchange rate quotes from a dealer: Exchange rate Bid Ask THB/USD 34.52 35.01 NZD/USD 1.5940 1.6025 What is the amount that the company will need to pay in NZD to purchase the required THB? and what is the percentage bid-ask spread for the two-sided THB/USD?Given below are a set of foreign exchange quotes for several currencies against the Australiandollar as of August 5, 2020.Australian Dollar Exchange RatesCurrency Sell/buyUS, dollar 0.7143/0.7143UK, pound 0.5458/0.5459China, yuan Renminbi 4.9872/4.9907Hong Kong, dollar 5.5349/5.5364India, rupee 53.572/53.669Japan, yen 75.70/75.70Malaysia, ringgit 3.0104/3.0139Philippines, peso 34.953/35.135South Africa, rand 12.2272/12. 2340Switzerland, franc 0.6551/0.6551Thailand, baht 22.1892/22.2317(a) A friend of yours is totally confused by these rates. She is planning to visit Thailand next monthand wishes to purchase 10,000,000 Baht. How many Australian dollars does she require,assuming she is able to use the above quotes?(b) What are the direct quotes for the following currencies with respect to the Australian dollar?(i) UK pound(ii) Chinese Renminbi(iii) Indian rupee(iv) Malaysian ringgit(v) South African rand(c) Create a table showing the bid and ask quotes of each of the following currency…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 $0.03118/LC What was the approximate discount or premium on a three-month forward for LC? A. 0.643% premium B. 0.013% premium C. 0.013% discount D. 0.643% discount
- Suppose Dassie Bank quoted the exchange rate of Singapore dollar in US$ at $0.60, the pound rate in US$ at $1.50, and the pound rate in Singapore dollars at S$2.6. Compared to the implied cross rate, the quoted pound rate in US$ is _____ priced. a. under b. fairly c. overOmni Advisors, an international pension fund manager, uses the concepts of purchasing power parity (PPP) and the International Fisher Effect (IFE) to forecast spot exchange rates. Omni gathers the financial information as follows: Base price level 100 Current U.S. price level 105 Current South African price level 111 Base rand spot exchange rate $ 0.192 Current rand spot exchange rate $ 0.175 Expected annual U.S. inflation 7% Expected annual South African inflation 5% Expected U.S. one-year interest rate 10% Expected South African one-year interest rate 8% Required: Calculate the following exchange rates (ZAR and USD refer to the South African rand and U.S. dollar, respectively): The current ZAR spot rate in USD that would have been forecast by PPP. Note: Do not round intermediate calculations. Round your answer to 4 decimal places. Using the IFE, the expected ZAR spot rate in USD one year from now. Note: Do not round intermediate calculations. Round your…May I get part C and D Given below are a set of foreign exchange quotes for several currencies against the Australiandollar as of August 5, 2020.Australian Dollar Exchange RatesCurrency Sell/buyUS, dollar 0.7143/0.7143UK, pound 0.5458/0.5459China, yuan Renminbi 4.9872/4.9907Hong Kong, dollar 5.5349/5.5364India, rupee 53.572/53.669Japan, yen 75.70/75.70Malaysia, ringgit 3.0104/3.0139Philippines, peso 34.953/35.135South Africa, rand 12.2272/12. 2340Switzerland, franc 0.6551/0.6551Thailand, baht 22.1892/22.2317(a) A friend of yours is totally confused by these rates. She is planning to visit Thailand next monthand wishes to purchase 10,000,000 Baht. How many Australian dollars does she require,assuming she is able to use the above quotes?(b) What are the direct quotes for the following currencies with respect to the Australian dollar?(i) UK pound(ii) Chinese Renminbi(iii) Indian rupee(iv) Malaysian ringgit(v) South African rand (c) Create a table showing the bid and ask quotes of each of…