On your summer study abroad program in Europe you stay travel from Paris to Moscow. You leave Paris with 2,000 euros (€ or EUR) in your belt pack. Wanting to exchange all of these for Russian rubles (R or RUB), you obtain the following quotes: 16,000.00 1.1946 Beginning your trip with euros Spot rate (USD-100 EUR or 5-) Spot rate (RUB-1.00 USD or RS) What is the Russian ruble to euro cross-over rate?
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- After finishing your degree, you decide to go on a post-graduation celebration trip to the UK. You leave with 8,000€ in your pocket. You want to exchange all these € for the U.K. pounds (GBP). Have a look at the WSJ table attached here and identify the following quotes: Spot rate on the EUR: Spot rate on the U.K. pound (GBP): What is the GBP/EUR cross rate? How many U.K. pounds (GBP) will you get for your Euros?On your post graduation celebratory trip you decide to travel to Munich, Germany, to Moscow, Russia. You leave Munich with 15,000 euros in your wallet. Wanting to exchange all of them for Russian rubles, you obtain the following quotes: Spot rate on the dollar/euro cross rate: $1.3214/E Spot rate on the ruble/dollar cross rate: Rbl30.96/$ What is the Russian ruble/euro cross rate? How many rubles will you obtain for your euros?Given we have 100,000 EUR in an EU bank account we consider the below options: "A" - to deposit the money today in a special savings account in the local bank at the current interest rate at r= 1% for one year. • "B" - to convert the amount into the USD if today's exchange rate is E, is €1/$1, transfer and deposit the money in a USA bank at the going interest rate there at r* = 5% for one year. Make an agreement today to convert and return a specified amount of US $ to € one year from today based on the forward exchange rate (F ) of €1.25/$1. The forward exchange contract can be signed today to eliminate any uncertainty. Which of the two is better?
- You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the total cost of SF 3.622for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.63/5F and the three month forward rate is $0.63/55 You can buy the three-month call option on SF with the created futies set cachon rate is the same on the forestedate. The three month interest rate is 6 percent chats of $0.775E for the premium of 50.06 per SE Assume that per annum in the United States and 4 percent per annum in Switzerland Calculate your expected doir cost of buying SF3.622 if you choose to hedge vu cill option on SF (keep two decimals, 41500.291You are the managing Director of Sunkwa limited a food processing company based in Atlanta in the United States of America. You are planning to visit Geneva, Switzerland in three months’ time to attend an international business conference. You expect to incur the total cost of SF 5,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.60/SF and the three-month forward rate is $0.63/SF. You can buy the three-month call option on SF with the exercise rate of $0.64/SF for the premium of $0.05 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 6 percent per annum in the United States and 4 percent per annum in Switzerland. 1. calculate the future dollar cost of meeting this SF obligation if you decide to hedge using a forward contract. 2. at what future spot exchange rate will you be…Munich to Moscow. On your post-graduation celebratory trip you decide to travel from Munich, Germany, to Moscow, Russia. You leave Munich with 15,900 euros in your wallet. Wanting to exchange all of them for Russian rubles, you obtain the following quotes Spot rate on the dollar/euro exchange rate $1.3121/€ Spot rate on the ruble/dollar exchange rate Rbl30.51/$ a. What is the Russian ruble/euro cross rate? b. How many rubles will you obtain for your euros? (Round to two decimal places.)
- You are the managing Director of Sunkwa limited a food processing company based in Atlanta in the United States of America. You are planning to visit Geneva, Switzerland in three months’ time to attend an international business conference. You expect to incur the total cost of SF 5,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.60/SF and the three-month forward rate is $0.63/SF. You can buy the three-month call option on SF with the exercise rate of $0.64/SF for the premium of $0.05 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 6 percent per annum in the United States and 4 percent per annum in Switzerland.REQUIRED;(i) At what future spot exchange rate will you be indifferent between the forward and option market hedges?You are the managing Director of Sunkwa limited a food processing company based in Atlanta in the United States of America. You are planning to visit Geneva, Switzerland in three months’ time to attend an international business conference. You expect to incur the total cost of SF 5,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.60/SF and the three-month forward rate is $0.63/SF. You can buy the three-month call option on SF with the exercise rate of $0.64/SF for the premium of $0.05 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 6 percent per annum in the United States and 4 percent per annum in Switzerland. QuestionCalculate your expected dollar cost of buying SF5, 000 if you choose to hedge via call option on SF.You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the total cost of CHF5,000 for lodging, meals, and transportation during your stay. As of today, the spot exchange rate is USDO.6000/CHF and the three-month forward rate is USDO.6300/CHF. You can buy the three-month call option on CHF with the exercise rate of USDO.6400/CHF for the premium of USD0.05 per CHF. Assume that your expected future spot exchange rate is the same as the forward rate. The future dollar cost of meeting this CHF obligation if you decide to hedge using a forward contract is USD We do not know the future value of the USD/CHF exchange because the rate is To help make your decision, you calculate the future spot exchange rate where you will be indifferent between the forward and option market hedges knowing that the option will require you to * a premium amount of USD Including the premium amount with the cost of the CHF at the exercise rate would…
- An importer in Oman wants to exchange OMR to KWD to make payment to the exporter in Kuwait after 3 months. He goes to a forex dealer in Oman who provides the following quotes for OMR/KWD. Spot rate =1.25695-6972 3 months rate = 1.32692-3642 How much OMR will the importer need to get KWD55000 after 3 months? a. 123274.8 b. All the options are wrong c. 122125.5 d. 73503.1 e. 72980.6After spending a week in Moscow, the traveler departs from Tokyo Japan here she has group of 450,000 left in the money pouch in preparation for the shrimp travel desires to convert all rubles to Japanese yen. The following spot race are available spot rate on the rubles, dollar cross rate Mobile 30.9600 spot rate on the Jan dollar cross rate yen eight 4.0 to the Japanese yen in Russian ruble cross rain is he in blank/Robo upon conversion of Roval 450,000 the traveler will receive in black .You sold goods for USD 2 million and expected to receive the proceeds in 2 months. You entered into a forward exchange contract (“FEC”) at AUD/USD 0.9600. You have been advised your customer cannot pay the USD 2m until 3 months after the FEC date. Your bank agrees that you can extend your FEC at the historical rate. Current spot rate is AUD/USD 0.8800 with USD and AUD interest rates 1% pa and 6% pa respectively. What is the approximate amount of AUD you will now receive at the revised future date: Select one: A. AUD 2,301,000 B. AUD 2,083,000 C. AUD 2,273,000 D. AUD 2,109,000