Anne Dietz at Changi # 3 (Singapore). Anne Dietz lives in Singapore, but is making her first business trip to Sydney, Australia. Standing in Singapore's new terminal #3 at Changi Airport, she looks at the foreign exchange quotes posted over the FX trader's booth. She wishes to exchange 1,100 Singapore dollars (S$ or SGD) for Australian dollars (A$ or AUD). What Anne sees: Spot rate: SGD1.3376= USD1.00 USD USD0.7673 = AUD 1.00 a. What is the Singapore dollar to Australian dollar cross rate? b. How many Australian dollars will Anne get for her Singapore dollars? C... a. What is the Singapore dollar to Australian dollar cross rate? The cross rate is SGD/AUD. (Round to four decimal places.) b. How many Australian dollars will Anne get for her Singapore dollars? Anne will get AUD (Round to two decimal places.)

Anne Dietz at Changi # 3 (Singapore). Anne Dietz lives in Singapore, but is making her first business trip to Sydney, Australia. Standing in Singapore's new terminal #3 at Changi Airport, she looks at the foreign exchange quotes posted over the FX trader's booth. She wishes to exchange 1,100 Singapore dollars (S$ or SGD) for Australian dollars (A$ or AUD). What Anne sees: Spot rate: SGD1.3376= USD1.00 USD USD0.7673 = AUD 1.00 a. What is the Singapore dollar to Australian dollar cross rate? b. How many Australian dollars will Anne get for her Singapore dollars? C... a. What is the Singapore dollar to Australian dollar cross rate? The cross rate is SGD/AUD. (Round to four decimal places.) b. How many Australian dollars will Anne get for her Singapore dollars? Anne will get AUD (Round to two decimal places.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Cachita Haynes. Cachita Haynes works as a currency speculator for Vatic Capital of Los Angeles. Her latest speculative position is to profit from her expectation that the U.S. dollar will rise significantly against the Japanese yen. The current spot rate is ¥119.00 = $1.00 She must choose between the following 90-day options on the Japanese yen: E a. Should Cachita buy a put on yen or a call on yen? b. What is Cachita's breakeven price on the option purchased in part (a)? c. Using your answer from part (a), what is Cachita's gross profit and net profit (including premium) if the spot rate at the end of 90 days is ¥140.00 $1.00? a. Should Cachita buy a put on yen or a call on yen? (Select the best choice below.) A. Cachita should buy a put on yen to profit from the rise of the dollar (the fall of the yen). OB. Cachita should buy a call on yen to profit from the fall of the dollar (the rise of the yen). OC. Cachita should buy a call on yen to profit from the rise of the dollar (the fall…
K (Foreign exchange arbitrage) You own $7,000. The dollar rate in Tokyo is ¥215.9372/$. The yen rate in New York is given in the following table: Selling Quotes for Foreign Currencies in New York Country-Currency Japan-yen Contract Spot 30-day 90-day (Click on the icon in order to copy its contents into a spreadsheet.) Are arbitrage profits possible? Set up an arbitrage scheme with your capital. What is the gain in dollars? The net View an example $/Foreign Currency "Assuming no transaction costs, the rates in Tokyo and New York are out of line. Therefore, arbitrage profits are possible." The statement above is true (Select from the drop-down menu.) 0.004698 0.004741 0.004782 Get more help - ... from arbitrage would be $ (Round to the nearest cent.) Clear all Check answer
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Which of the following is (are) example(s) of a Eurocurrency market transaction? A bank in Sydney lends euros to a company in Paris. A company in New York borrows euros from a bank in London. A bank in Auckland lends US dollars to a bank in Tokyo, which then on lends the US dollars to another borrower in Jakarta. Chose 1 option from : Only III. I and II. Only I. Only II. II and III.
1
H3. The Central Bank of the Bahamas pegs the Bahamian Dollar to the United States Dollar at a price of 1 BSD per USD. As an analyst for XYZ Consulting Inc., you have been asked to predict the behavior of key macroeconomic variables in the Bahamas for different policy scenarios. Using all the appropriate diagrams, your analysis must describe the Bahamian money and output markets, as well as the foreign exchange market. To perform this task, you must assume that prices are sticky: fixed in the short-run and flexible in the long-run. The scenarios are: a) A temporary restrictive monetary policy in the Bahamas. b) A temporary restrictive fiscal policy in the Bahamas.
Suppose the quoted spot rates are EUR0.951/USD and JPY141.52/USD. You are a U.S. citizen that has recently graduated and applied for three corporate treasury roles with the following MNCs and are weighting up the offers they have provided you: Adidas (German): EUR129, 000 p.a Asics (Japan): JPY19,360,000 p.a. Nike (US): USD135,000 p.a The cost of a basket of goods in the US is currently USD 11,737. Rank these job offers from least to most attractive. To accept the job offer you must reside in the country in which the company operates. Suppose you're indifferent between living in Germany, the US. and Japan. Choose the correct option a. Nike, Adidas, Asics b. Adidas, Nike, Asics c. Adidas, Asics, Nike d. Asics, Nike, Adidas e. Asics, Adidas, Nike f. Nike, Asics, Adidas g. All offers are equally attractive
As 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$5,000 in 1 months' time, how much is it pay in RM? ii.
Chapter 18, Question 2. Was incorrect the first time. Attached is a similar question with answers
Ruth trades currencies for Industrial and Commercial Bank of China (ICBC) in Beijing. She is currently interested in the U.S. dollar/Australian dollar ($/A$) cross-rate. The current spot rate is $0.7200/A$. Ruth believes that the Australian dollar will appreciate versus the U.S. dollar in the coming 90 days, probably to about $0.8100/A$. She has the following options on the Australian dollar to choose from: Option Put on A$ Call on A$ Strike Price $0.7500/A$ $0.7500/A$ Premium $0.00004/A$ $0.00048/A$ a. Should Ruth buy a put on Australian dollars or a call on Australian dollars? b. What is Ruth's breakeven price on the option purchased in part (a)?

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