1. Dollar quotation FFr DM £ ¥ Closing Mid-point 5.675 1.692 1.6812 6.4628 Bid/Offer Spread 740-760 917-922 808-816 549-680 One Month Rate 5.665 1.689 1.6786 6.4658
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- Assume that you are a retail customer. Use the information below to answer the following question. Exchange Rate - Bid Exchange Rate - Ask Interest Rate APR S0($/€) $ 1.42 = € 1.00 $ 1.45 = € 1.00 i$ 4 % F360($/€) $ 1.48 = € 1.00 $ 1.50 = € 1.00 i€ 3 % If you had borrowed $1,000,000, traded them for euros at the spot rate, and invested those euros in Europe, how many euros do you receive in one year?An importer in Oman wants to exchange OMR to EUR which he will be Paying to an exporter after 3 months. He goes to a forex dealer in Oman who provides the following quotes for OMR/EUR Spot rate =0.460727-927 3 months rate = 0.480827-997 How much OMR will the importer pay in to receive 75000 Euros after 3 months? a. All the options are wrong b. 34569.53 c. 36062.03 d. 34554.53 e. 36074.78a) The Business and Financial Times currently has given the following quotes between ¢:$ as:Spot = 0.7200 – 0.72501 month forward = 0.0014 – 0.0016 premium1 month forward rate = 0.7186 – 0.7234 i. Your company currently has GH¢32,500 and wishes to import goods from America. Assuming you are the financial advisor of such company, what will be your advice? ii. Should they import now or a month’s time, assuming prices will remain constant? b) Agency problem is pervasive and exists in practically every organization whether a business, church, club, or government. Organizations try to solve it by instituting measures but no organization can remedy it completely.How would you analyze this statement within the context of a limited liability company and what are the possible remedies to this problem?
- Use the following information on the U.S. dollar value of the euro to answer the question. Forward Rate for Spot Rate April 30, 2024 Delivery $1.130 $1,140 October 20, 2023 November 1, 2023 December 31, 2023 April 30, 2024 Select one: 1.148 1.100 1.170 On October 30, 2023, a US company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100.000 on April 30; 2024 On October 30, the US company also enters a forward contract to sell €100,000 on April 30, 2024. The company delivers the merchandise to the customer on November 1, On April 30, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31. What net gain or loss is recognized in 2023, in addition to sales revenue? esc a $500 net loss b. 1800 net gain, c. $800 net loss d. $500 net gain 3.145 1165 1.170 * 8: MacBook Air & FL 40 # 6-41 16 W 19 F M mCan I kindly get part d and e. The following data are taken from the financial market pages of an Australian newspaper.Forward MarginsForward Contract Forward Margins (Buy A$/Sell A$)1 month 0/12 month 1/23 month 1/36 month 2/41 year 0/12 years -16/-83 years -51/-11The data under the “Forward Margins” column represent the forward contracts for the USdollar with respect to the Australian dollar (given in points form).(a) Using this data, and the bid-ask for spot USD at 0.7144 to 0.7145, compute the outrightbid/ask rates for the following forward contracts:(i) 1 month(ii) 6 month(iii) 2 years(iv) 3 years(b) Calculate the forward premium for the following contracts:(i) 2 month(ii) 3 month(iii) 6 month(iv) 1 year c) You expect to receive US$ 70,000 in 6 months. What amount in A$ will that convert intoof you use the above forward rates? d) You need to buy US$ 500,000 in 2 years. How many A$ will you need if you use theforward rates above? e) What do the forward rates indicate in terms of…Give typing answer with explanation and conclusion 1. You enter an NDF to buy UYU (Uruguayan Peso) for $.0363/UYU. The contract size is UYU50,000,000 and the contract matures in six months. If the spot rate is $.0381/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total? If the spot rate is $.0346/UYU in six months, will you owe the bank money, or will the bank owe you money? How much in total?
- QUESTION 2 Define Exchange rate and distinguish between direct and indirect quote. Johnson is a US citizen who recently got married to Bridget in New York. Johnson and Bridget plan to spend USD 1,000 each in Spain, New Zealand and Scotland as their honeymoon package. At a Bank in New York they were offered the following bid-ask quote USD/EUR 1.304-1.305, USD/NZD 0.67-0.69 and USD/GBP 1.90-1.95. If Johnson and Bridget accept these quote how many EUR, NZD and GBP do they have on departure? If they return after their honeymoon with EUR 300, NZD 1,000 and GBP 75 and the exchange rate remain unchanged, how many USD will they have? (i) Draw the rate of return diagram depicting the return on assets for the two separate countries Japan and Germany. Assume that (Currency ¥) is considered to be domestic and Germany (Currency €) a foreign country. Mention the equilibrium exchange rate between the two countries. Assume that the Japan Interest rate (i¥) and the Germany Interest…As a US importer, we have the option of hedging with forwards, options, or not hedging. The size of the transaction is 6.04 million British Pounds. There are 62,500 pounds in 1 option contract. Now End Spot 1.240-41 $/L 1.100-01 $/L Forward 1.230-31 $/L Call .04$ 0 Put .03$ .14 How much would you receive/pay if you had hedged with forwards?An importer in Oman wants to exchange OMR to KWD to make payment to the exporter in Kuwait after 3 months. He goes to a forex dealer in Oman who provides the following quotes for OMR/KWD. Spot rate =1.25695-6972 3 months rate = 1.32692-3642 How much OMR will the importer need to get KWD55000 after 3 months? a. 123274.8 b. All the options are wrong c. 122125.5 d. 73503.1 e. 72980.6
- Let’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold all of them in the US market at $400 in cash on Dec 15, 2018. The company's fiscal year ends on Dec 31. You paid to your German supplier on Feb 1, 2019. Below, please find the exchange rate information: Dec 1, 2018: 1.2 $/€. Dec 31, 2018: 1.5 $/€ Feb 1, 2019: 1.0 $/€ What was net income for 2018 and 2019, respectively? Group of answer choices A) -$50, $150 B) $250, -100 C)$200, $100 D)$250, $100As a foreign exchange trader at a Citibank, you are given the following quotations: 2-month forward 1-month Exchange Rate Spot Rate forward 1 Singapore Dollar (S$) 100 Japanese Yen (100\) 1 Australian Dollar (AUD) RM3.0500/10 RM3.5000/30 RM3.1010/40 20/70 25/65 45/35 60/50 35/70 65/55 Country Malaysia Japan Singapore Rate 15% 3-Month interest rate 10% 20% Calculate: If you as a foreign exchange trader are expected to receive S$5,000 in 1 months' time, how much is it pay in RM? ii.As a foreign exchange trader at a Citibank, you are given the following quotations: 1-month 2-month Exchange Rate Spot Rate forward forward 1 Singapore Dollar (S$) 100 Japanese Yen (100¥) 1 Australian Dollar (AUD) RM3.0500/10 RM3.5000/30 RM3.1010/40 20/70 25/65 45/35 60/50 35/70 65/55 Country Malaysia Japan Singapore Rate 15% 3-Month interest rate 10% 20% Calculate: iii. If the bank's customer wishes to buy ¥200,000 in 2 months' time, how much he must pay in RM?