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Question 1 As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on AUD. Current market rates are as follows: • Spot ● ● ¥101.37-85/U.S.$ 1 A$1.2924-44/U.S.$ 1 30-day 15-13 20-26 a. What bid and ask yen cross rates would you quote on spot Australian dollars? b. What outright yen cross rates would you quote on 30-day forward Australian dollars? • c. What is the forward premium or discount on buying 30-day Australian dollars against yen delivery?

Question 1 As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on AUD. Current market rates are as follows: • Spot ● ● ¥101.37-85/U.S.$ 1 A$1.2924-44/U.S.$ 1 30-day 15-13 20-26 a. What bid and ask yen cross rates would you quote on spot Australian dollars? b. What outright yen cross rates would you quote on 30-day forward Australian dollars? • c. What is the forward premium or discount on buying 30-day Australian dollars against yen delivery?

Essentials Of Investments
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
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Question 1 As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on AUD. Current market rates are as follows: Spot ● ● ● ¥101.37-85/U.S.$ 1 A$1.2924-44/U.S.$ 1 30-day 15-13 20-26 a. What bid and ask yen cross rates would you quote on spot Australian dollars? . b. What outright yen cross rates would you quote on 30-day forward Australian dollars? • c. What is the forward premium or discount on buying 30-day Australian dollars against yen delivery?
Transcribed Image Text:Question 1 As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on AUD. Current market rates are as follows: Spot ● ● ● ¥101.37-85/U.S.$ 1 A$1.2924-44/U.S.$ 1 30-day 15-13 20-26 a. What bid and ask yen cross rates would you quote on spot Australian dollars? . b. What outright yen cross rates would you quote on 30-day forward Australian dollars? • c. What is the forward premium or discount on buying 30-day Australian dollars against yen delivery?
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