On 15 April 2021, JHB Bank quoted the following spot and swap rates between the rand and the euro (ZAR/EUR) to a client called MAZDALtd. Rates quoted by JHB Bank on (ZAR/EUR): Bid – Offer Spot (ZAR/EUR) (Spot date: 15 April 2021): 15.7258 – 19.5567 2-month swap rate (i.e., Forward value date: 15 June 2021): 1290 – 1350 12-month swap rate (i.e., Forward value date: 15 April 2022): 7055 – 9534 Other important information Expected inflation rate in SA over next 12 months: 4.67% Expected inflation rate in euro area over next 12 months: 1.95% The price of one Apple MacBook computer in euro area: EUR 689 The price of one Apple MacBook computer in South Africa: ZAR 22350 Euro area 12-month interest rate: 3.50% South African 12-month interest rate: 8.90% 2.1 The exchange rate at which JHB Bank is willing to sell the ZAR spot is ____? 2.2 The exchange rate at which JHB Bank is willing to buy the EUR two months forward is _____? 2.3 The exchange rate at which MAZDA Ltd. will buy the EUR 12 months forward? 2.4 How much will MAZDA Ltd. receive when selling ZAR250000 to USB Bank with a two-month foward contract
On 15 April 2021, JHB Bank quoted the following spot and swap rates between the rand and
the euro (ZAR/EUR) to a client called MAZDALtd.
Rates quoted by JHB Bank on (ZAR/EUR): Bid – Offer
Spot (ZAR/EUR) (Spot date: 15 April 2021): 15.7258 – 19.5567
2-month swap rate (i.e., Forward value date: 15 June 2021): 1290 – 1350
12-month swap rate (i.e., Forward value date: 15 April 2022): 7055 – 9534
Other important information
Expected inflation rate in SA over next 12 months: 4.67%
Expected inflation rate in euro area over next 12 months: 1.95%
The price of one Apple MacBook computer in euro area: EUR 689
The price of one Apple MacBook computer in South Africa: ZAR 22350
Euro area 12-month interest rate: 3.50%
South African 12-month interest rate: 8.90%
2.1 The exchange rate at which JHB Bank is willing to sell the ZAR spot is ____?
2.2 The exchange rate at which JHB Bank is willing to buy the EUR two months forward is
_____?
2.3 The exchange rate at which MAZDA Ltd. will buy the EUR 12 months forward?
2.4 How much will MAZDA Ltd. receive when selling ZAR250000 to USB Bank with a two-month foward contract
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