The premium of a 100-strike yen-denominated put on the curo is 8.763. The current exchange rate is 95 /c. What is the strike of the corresponding euro-denominated yen call, and what is its premium?
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- Suppose that the spot rate for the euro is $1.5400 and with a forward premium of 2.00%. Which of the following most closely approximates the implied forward rate of the euro in this situation? O-$0.0016 O-$0.0031 O-$0.0047 O $1.5708Suppose the spot price of a euro in dollars is $0.932. The U.S. interest rate for 90 days is 6.875% and the euro rate for 90 days is 4.450%. All interest calculations are done as rate times (#days/360). a. What is the rate for a 90-day forward contract on the euro? b. Suppose the euro forward contract is currently quoted at $0.95. What type of transaction(s) should an arbitrageur conduct to take advantage of the apparent mispricing Only typed answerA. If $1.55 = 1 pound, what is the pound price of dollars? B. If $/pound = 1.6510 and $/Euro = 1.0131, what is pound/Euro? C. If s = $1.5204/pound and f = $1.5210/pound, which currency is at a forward premium? What is the magnitude of the forward premium? What is the magnitude of the forward discount?
- The current USD/EUR exchange rate is [de] dollar per euro. The one-year forward exchange rate is [fe]. The one-year USD interest rate is [rus]% p.a. semiannually compounded. Estimate the one-year EUR interest rate (p.a. semiannually compounded, stated in percent). Inputs: de, fe, rus = 1.85, 1.75, 1.31 Tip: Use the CIPd) You observe the following exchange rates in the market. i) $1 = 0.85 euros and 1 krona = $ 0.13. Find the cross exchange rate between euro and krona, that is, how many euros do you receive for every krona exchanged?Suppose the spot $/¥ exchange rate is 0.007, the I -year continuously compound dollar - denominated interest rate is 5% and the I - year continuously compounded yen - denominated interest rate is 1 % . What is the I - year forward exchange rate? Question 14 options: $0.0083265 $0.0072857 $0.0093673 $0.0083682 $0.0082850
- A6) Finance What is a forward exchange rate? When does deliv- ery occur on a 90-day forward contract?) In another case are these quotes: Spot rate €1.2562/£; 1 month forward €1.2662/£. Which of the two currencies is trading at forward premium?Suppose you observe the following exchange rates: €1 = S1.45; £1 = $1.90. Calculate the euro-pound exchange rate: O a. €1.3103 = £1.00 O b.€3 = £1 O c. £1.3333 = €1.00 Od. €2.00 = £1
- Suppose that the quote for Euro is 1.1120-44/EUR. If you want to buy 259, which of the following is closest to that amount of Euros that you will need to pay? O a. EUR 232.41 O b. EUR 288.32 O. EUR 232.91 O d. EUR 288.01 O e. EUR 288.63Question If the exchange rate is such that $1 equals 5 euros, then the price of a euro is Answer a. $5 b. $1 c. $0.40 d. $0.20Forward premiums/discounts with bids/asks. Referring to the following spot and forward bid-ask rates for the US$/€ exchange rate, answer the questions that follow: a. Is the euro at a premium or discount vis-à-vis the U.S. dollar?b. What is the annualized forward premium or discount for each maturity?
