XYZ Inc. entered into a three-year cross-currency interest rate swap to receive U.S. dollars and pay Euro (€). XYZ, however, decided to unwind the swap after two years. Based on the information below, if XYZ unwinds the swap after two-year, what is the cumulative present value of the remaining dollar cash flows? Assumptions Values Notional principal $16000000 Original spot exchange rate, $/€ 1.27 New (2-year later) 1.37 spot exchange rate, $/€ Swap Rates 3-year Bid 3-year Ask Original: US dollar 0.0467 0.0532 Original: Euro 0.018 0.0274 The cumulative present value of the remaining dollar cash flows is $

You are US company, 500,000 BP (British Pound) payable to UK in one year. Answer in terms of US$.   Information for Forward Contract: Forward exchange rate (one yr): 1.54 $/BP   Information for Money Market Instruments (MMI): Current exchange rate: 1.50 $/BP Investment return at Aerion Fund Management (in UK): 6% annual Interest rate of borrowing from Bank of America (in USA): 2% annual   Information you need for Currency Options Contract: Options premium: 0.015 $/BP Interest rate of borrowing from Bank of America (USA): 2% annual Allowed to exercise options at 1.54 $/BP   What are the costs of MMI? (Answer in US$ of course. You are US company!)

Subject:- finance

Assume Carlton enters into a three-year fixed-for-fixed swap agreement to receive Swiss Franc and pay U.S. dollars annually, on a notional amount of $4,000,000. The spot exchange rate at the time of the swap is SF0.8/$. Assume that one year into the swap agreement, Carlton decides it wishes to unwind the swap agreement and settle it in dollars. Assuming that a two-year fixed rate of interest on the Swiss Franc is now 2.59%, and a two-year fixed rate of interest on the dollar is now 5.90%, and the spot rate of exchange is now SF0.54/$. To Carlton, what is the swap agreement's net present value (in dollars)? two decimal places.) (Keep the sign and Euro-€ Swiss franc U. S. dollar Japanese yen Years Bid Bid Ask Bid Ask Ask Bid Ask 2 3.08 3.12 1.76 1.68 5.43 5.46 0.45 0.49 3 3.25 3.29 2.12 2.17 5.54 5.59 0.56 0.59

Goodyear, a U.S. firm, sells tires to Airbus UK, and will receive payment of £1,000,000 in one year. Goodyear's bank quotes the information below: o The spot exchange rate is o The 1-year interest rate on dollars is ius = 2.00% e$/£ $1.50/£ %3D o The 1-year interest rate on pounds is iUK = 5.50% o The 1-year forward rate on pounds is fs/£ = $1.45/£ %3D In addition, Goodyear contacts private forecasters in the market and concludes: o The 1-year-ahead expected exchange rate on the Pound is eex £ = $1.40/£

The current spot exchange rate is AUD 1.4925 = USD1. The Australian risk-free rate is 1.5% p.a. compounded continuously, whereas the US risk-free rate is 2.2% p.a. compounded continuously. The no-arbitrage price on a 9-month forward contract written on the exchange rate is likely to be _______________     AUD 1.485 / USD     USD 0.667 / AUD     AUD 0.674 / USD     AUD 1.500 / USD

An investor in England purchased a 91-day $1,000 par T-bill for $987.65. At that time, the exchange rate was $1.75 per pound. At maturity, the exchange rate was $1.83 per pound. What was the investor’s holding period return in pounds?

2 Assume Carlton enters into a three-year fixed-for-fixed swap agreement to receive Swiss Franc and pay U.S. dollar annually, on a notional amount of $6,000,000. The spot exchange rate at the time of the swap is SFO.8/$. Assume that one year into the swap agreement Carlton decides it wishes to unwind the swap agreement and settle it in dollars. Assuming that a two- year fixed rate of interest on the Swiss Franc is now 2.59%, and a two-year fixed rate of interest on the dollar is now 5.90%, and the spot rate of exchange is now SFO.0.810/$. To Carlton, what is the net present value (in dollar) of the swap agreement? (Keep the sign and two decimal places.) 3 Euro-€ Years Bid Ask Bid Ask Swiss franc 3.08 3.12 1.68 1.76 3.25 3.29 2.12 2.17 U.S. dollar Bid Ask 5.43 5.46 Japanese yen Bid 0.45 5.54 5.59 0.56 Ask 0.49 0.59