In 2022 before the LME nickel crisis, what was Tshingshan Holding groups position? Did they short the nickel itself ie borrow nickel and sell it and then in the future repurchase it or did they short future contracts for nickel ie agree to sell nickel at certain price in future?
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In 2022 before the LME nickel crisis, what was Tshingshan Holding groups position? Did they short the nickel itself ie borrow nickel and sell it and then in the future repurchase it or did they short future contracts for nickel ie agree to sell nickel at certain price in future?
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- Q3 GT Bank Ghana Limited quotes JPY/EUR 155-165, and GCB Bank quotes EUR/JPY 0.0059-0.0063.Are these quotes identical? If not, is there an opportunity for arbitrage?If there is an opportunity for arbitrage, how would one profit from it?Given the bid-ask quotes for jpy/gbp 220-240, at what rate will:Mr. Agbo purchase gbp? Mr. Agbo sell gbp? Mr. Debrah purchase jpy? Mr. Kwaku sell jpy? Q4 An analyst holds a set of forward contracts on euro, against usd (=hc). Below are the forward prices in the contract; the current forward prices (if available) or at least the current spot rate and interest rates (if no forward is available for this time to maturity). Compute the fair value of the contracts.(a) Purchased: eur 1m 60 days (remaining). Historic rate: 1.350; current rate for same date: 1.500; risk-free rates (simple per annum): 3% in usd, 4% in euro. (b) Purchased: eur 2.5m 75 days (remaining). Historic rate: 1.300; current spot rate: 1.5025; risk-free rates (simple per annum): 3% in usd,…. GT Bank Ghana Limited quotes JPY/EUR 155-165, and GCB Bank quotes EUR/JPY0.0059-0.0063a. Are these quotes identical? b. If not, is there an opportunity for arbitrage? c. If there is an opportunity for arbitrage, how would one profit from it? 3. Given the bid-ask quotes for jpy/gbp 220-240, at what rate will:(a) Mr. Agbo purchase gbp? (b) Mr. Agbo sell gbp? (c) Mr. Debrah purchase jpy?(d) Mr. Kwaku sell jpy?Which one of the following statements is NOT correct? a) A repurchase agreement is the sale of a non-monetary asset together with an agreement to repurchase it a specified future date b) The difference between the price at which a commercial bank sells an asset to the central bank and the price at which it agrees to buy it back can be expressed as an annualized percentage of the selling price, and this is called the refinancing rate c) In the UK the refinancing rate is known as the repo rate d) If the central bank raises its refinancing rate then the commercial banks will try to increase their lending
- If the euro depreciates against the U.S. dollar, can a dollar buy more or fewer euros as aresult? Explain.(a) Which contract reached the highest price on this trading day? What was its contract value at that price? (d) Why is the high price equal to the low price for the contract expiring in October 2022?An Austra ian companv has decided to issue a 90-dav bank-accepted bill domestically to raise additionafunding of S18000 to buy equipment. If the bank has agreed to discount the bill at a yield of 8.5% per annum,which of the following values will the face value of the bill be closest to? a.S17913.31 b.S17641.62 O c.S18744.81 d.$18377.26 e.s17630.48 f.s18000.00 g.S18382.50.
- How might thetreasurer of a multinational firm use the interest rate parity concept (a) when deciding howto invest the firm’s surplus cash and (b) whendeciding where to borrow funds on a short-termbasis?Pink has just sold equipment to Black. Pink is a US company who has USD accounting. Sale date is March 2020 and payment date is September 2020. Deal amount €2 000 000 Spot March = $1.20/€ 6-month forward contract = $1.14€ Spot September forecast = $1.16/€ Eurozone 6-month borrowing rate = 2.0%/year If Pink hedges 50% of the exposure with forward contracts, then foreign exchange gains/(losses) are _________In the following cases, state which type of exchange rate risk the company is facing and wheter this risk is beneficial or harmful in nature. A British power-generating company imports coal from Germany, paying for the coal in euros. The company expects the pound to weaken against the euro over the next year. A UK toy company supplies only the domestic market. Its only major competitor in this market if a US toy company. The pound is expected to weaken against the dollar over the next year. A UK company has bought a factory in France, financing the purchase with a sterling borrowing. Over the next year the pound is expected to appreciate against the euro.
- Read the following information: American Bank quotes a bid rate of $0.026 and an ask rate of $0.028 for the Indian rupee (INR); Indian national bank quotes a bid rate of $0.024 and an ask rate for $0.025. Locational arbitrage would involve _______. A. buying rupees from National Bank at the bid rate and selling them to American Bank at the ask rate B. buying rupees from National Bank at the ask rate and selling them to American Bank at the bid rate C. buying rupees from American Bank at the ask rate and selling to National Bank at the bid rate D. buying rupees from American Bank at the bid rate and selling them to National Bank at the ask rateAssume that you are a retail customer. Use the information below to answer the following question. Exchange Rate - Bid Exchange Rate - Ask Interest Rate APR S0($/€) $ 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?You are an investor in the world where short-selling assets is prohibited. Suppose that the price of asset X in period 0 is $200. This asset will pay a dividend of $8 one year from now in period 1. Let the riskless interest rate from 0 to period q be 5%.Assume the price for a future contract delivery in period 1 is $210. a) Can you make an arbitrage profit when $210 is the price? If so, state specifically what financial transaction? b) Now, assume the price for a futures contract with delivery in period 1 is K190. Can you make an arbitrage profit when this is the price? If so, state specifically what financial transaction you would make in 0 and period 1 to realize a profit. If not, explain?