Calculate the cross rate between the EUR (the euro) and the INR (Indian rupee). Set it up as INR/EUR. The following is a list of available rates: USD 1.17/EUR USD 0.27/SAR  SAR 4.38/EUR  INR 64.4/USD  Options are: EUR 17.388/INR  EUR 0.0575/INR  INR 75.348/EUR  INR 17.388/EUR

Q: The following are the prices in the foreign exchange market between the U.S. dollar and another…

A: Given: Spot rate =$0.03112/LC3 month forward =$0.03117/LC

Q: Suppose the Japanese yen exchange rate is ¥107 = $1 and the British pound exchange rate is £1 =…

A: Cross rate refers to the exchange rate of any two currencies whose quote is not published. A…

Q: st rates in the U.S. andeuro are 4% and 6% respectively and the spot rate for Euro ($/€) is $1.1550,…

A: According to interest rate parity the forward rate and spot exchange rate both should be in…

Q: A. If $1.55 = 1 pound, what is the pound price of dollars? B. If $/pound = 1.6510 and $/Euro =…

A: A) Given, $1.55 =1 Pound Pound Price of Dollars i.e. 1 Dollar = 1/1.55 Pounds 1 Dollar = 0.6451…

Q: A Big Mac costs SFr6.50 in Switzerland and US$5.74 in the United States. If current spot rate is…

A: An exchange rate is how much it costs to exchange one currency for another. Exchange rates fluctuate…

Q: Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.41 = $1.0o, and the exchange…

A: Exchange rate (ER) is a value at which 2 different currencies are exchanged or traded. ER is…

Q: Let the NZ$-Euro exchange rate be 0.60 (1 NZD buys 0.60 Euro). Let the NZ price level (P) be 40 and…

A: Real exchange rate or RER is that exchange rate which is inflation adjusted i.e. rate is adjusted…

Q: Assume the following information regarding U.S. and European annualized interest rates: Currency…

A: Borrow euro € 20,000,000. Then conversion of € 20,000,000 to $ value is

Q: Suppose one-year German Treasury bill pays 4.12% and one-year Canadian Treasury bill pays 2.33%. The…

A: Option 1: Investing in EURO: Given,  Amount in CAD = 4,000,000 Converting into Euro at Spot Rate  =…

Q: You need to convert some Swiss francs into euros (€). In addition to quoting the dollar/franc…

A: Exchange Rate ($/CHF) = $1.05/CHF Exchange Rate ($/∈) = $1.15/∈

Q: the spot exchange between Euro and pound is Euro1.1/Pound, and the UK Guilt returns a 0.5% yield. It…

A: The formula to compute net yield is as follows:

Q: Crazy car price in Pounds is 576 and in Euros is 642. What is the exchange rate for Eure a) 1.1146…

A: Exchange rate is the rate at which a person can exchange one currency for another. It can be direct…

Q: d) You observe the following exchange rates in the market.       i) $1 = 0.85 euros and 1 krona = $…

A:

Q: A product sells for $1,000 in the U.S. If the exchange rate between $ and euro is $1 = 0.90 euro,…

A: Given data; Price of product in US = $1,000 Exchange rate between dollar and Euro = $1 = 0.90 euros

Q: The current exchange rate is €0.92 per U.S. dollar, but you think that U.S. dollar will appreciate…

A: Given: Current exchange rate (Spot rate)=€0.92 per U.S dollarForward exchange  rate=€0.95 per U.S.…

Q: Is there any violation of CIP? (b) Calculate the covered margin (going short on the AUD). (c)…

A: Here the spot rate is lower than the forward rate, so the EUR is selling at a premium.  The interest…

Q: Given the following exchange rates in the market, what should be the cross exchange rate between…

A: Cross exchange rate is the rate which is determined between two currencies. Both the currencies are…

Q: Suppose that the EUR/USD spot exchange rate is EeUr'USD =0.95 and that a 12-month for contract is…

A: The rates may go up and down depending on the interest rate and there may be appreciation or…

Q: Suppose that the current EUR/GBP rate is 0.6674 and the one-year forward exchange rate is 0.6748.…

A:

Q: Calculate the possible rate for buying GBP

A: Triangular arbitrage is the process where two related goods set the third price. The FX cross…

Q: The interest rate in the United States is 4% and the exchange rate is $1 = €0.92, the euro is…

A: Interest rate parity refers to the theory which tells us that the interest rates differential or…

Q: (a) Determine the cross rate for ARS/OMR? (b) If you wanted to exchange ARS 20,000, how much OMR…

A: Cross Rate = The Exchange Rate between two currencies is calculated using the third currency which…

Q: Crazy car price in Pounds is 576 and in Euros is 642. What is the exchange rate for Euro? a) 1.1146…

A: Exchange rate is the value of one currency expressed in terms of another currency. It is the rate at…

Q: The dollar-euro exchange rate is USD 1.25 = EUR 1, and the dollar-yen exchange rate is JPY 100 = USD…

A: Cross rate for Euro Yen  = USD/EUR * JPY/USD

Q: A currency trader observes that in the spot exchange market, 1 U.S. dollar can be exchanged for 3.5…

A: You have to find out cross rates between two currencies.

Q: Below is the information regarding U.S. and Canadian annualized interest rates: Currency Lending…

A: Borrow Euros = $20,000,000 Spot Rate of Euro = $1.13 U.S. Lending rate = 6.73% Euro Borrowing rate =…

Q: Assume that 1 U.S. dollar can be exchanged for 105 Japanese yen or for 0.80 euro.What is the…

A: Exchange rate the rate at which currency of one country can be exchanged for other currency. These…

Q: Given the below quotes for the Japanese Yen and the Malaysian Ringgit, calculate the MYR/JPY cross…

A: USD/JPY 110.38 i.e. USD1 = JPY 110.38 USD/MYR 0.43. i.e. USD 1 = 0.43 MYR

Q: Let the spot rate be Yen 100 / $ and the 3-month forward rate be Yen 99/$. Compute the interest rate…

A: Interest rate differentials are generally used to determine the difference between the rate of…

Q: You are given the following quotes: U.S. dollar/Mexican Peso = 0.2501 U.S. dollar/Australian Dollar…

A: To calculate the cross rate for Chines Yuan/Australian Dollar, simply divide U.S. Dollar /Australian…

Q: Assume that the indirect quote is for 115 Japanese yen per U.S.dollar and that the direct quote is…

A: Computation of Exchange rate of 1Euro is equal to how many yen: The exchange rate is given: 1US$=115…

Q: Suppose that the quote for Euro is 1.1120-44/EUR. If you want to buy 259, which of the following is…

A: The quote for Euro 1.1120-44/EUR  represents the bid-ask spread whereby the bid is 1.1120 and the…

Q: Suppose that the current spot exchange rate is €1.50/₤ and the one-year forward exchange rate is…

A: Arbitrage is the process of making a profit through the purchase and sale of currencies in two or…

Q: When translating Acceletron’s fi nancial statements into US dollars, Redline is least likelyto use…

A: The question is based on the concept of translation, which is used a currency exchange value for…

Q: In the spot market, P1 = 100 USD, 1 USD = 0.95 Yen, and 1 Yen = 5.50 British Pound.  What is the…

A: Cross exchange rate method is used when there is no direct quotation of currencies. Thereafter, with…

Q: Suppose you have the following spot exchange rates:   USD/AUD 0.5300 AUD/EUR 1.6428 USD/EUR…

A: Triangular Arbitrage is a trading strategy in which profit is earned from the price differential of…

Q: Suppose that the current spot exchange rate is €0.830/S and the three-month forward exchange rate is…

A: Covered interest arbitrage is an arbitrage trading strategy used by an investor to capitalize on the…

Q: Suppose that the following exchange rates are current: 1 US$ = 61.42 Indian Rupees, 1 Japanese Yen =…

A: Point Currency Rate Currency Equals Rate Currency A ₹/$ 1 $ = 61.42 ₹ B ₹/¥ 1 ¥ = 0.57 ₹ C ¥/$…

Q: If the exchange rate is such that $1 equals 5 euros, then the price of a euro is $5 $1 $0.40 $0.20

A: The exchange rate is the currency value of one country in term of the currency of another country.…

Q: You live in the United States and want to try to make some money through interest rate arbitrage…

A: Foreign Exchange Market is that under which we were trading in Foreign Currency we can make the…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.