Question 2 The following wholesale exchange rates are taken from Oanda.com on September 21, 2020. Currency Pair AUD/USD AUD/JPY AUD/CAD Bid Ask 0.7306 0.7307 76.25 76.32 0.9626 0.9634 AUD/NZD AUD/CHF 1.0781 1.0795 0.6648 0.6653 Note: The quotes above are in the base currency/quote currency format. For instance, AUD/USD indicates that AUD is the base currency and USD is the quote currency. The quotes indicate how much of the quote currency is needed for you to get one unit of the base currency. a) Create a table showing the bid and ask quotes of each of the following currency pairs: USD/CAD; JPY/CAD; JPY/NZD; CHF/JPY. b) If you were to buy JPY 100,000 on September 21, how many Australian dollars do you need for the purchase at the above rate? c) If you were to sell NZD 250,000 on September 21, how many Australian dollars will you receive using the rate given above?

Question 2 The following wholesale exchange rates are taken from Oanda.com on September 21, 2020. Currency Pair AUD/USD AUD/JPY AUD/CAD Bid Ask 0.7306 0.7307 76.25 76.32 0.9626 0.9634 AUD/NZD AUD/CHF 1.0781 1.0795 0.6648 0.6653 Note: The quotes above are in the base currency/quote currency format. For instance, AUD/USD indicates that AUD is the base currency and USD is the quote currency. The quotes indicate how much of the quote currency is needed for you to get one unit of the base currency. a) Create a table showing the bid and ask quotes of each of the following currency pairs: USD/CAD; JPY/CAD; JPY/NZD; CHF/JPY. b) If you were to buy JPY 100,000 on September 21, how many Australian dollars do you need for the purchase at the above rate? c) If you were to sell NZD 250,000 on September 21, how many Australian dollars will you receive using the rate given above?

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter17: Multinational Financial Management

Section: Chapter Questions

Problem 6P

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Question 2 The following wholesale exchange rates are taken from Oanda.com on September 21, 2020. Currency Pair AUD/USD Bid Ask 0.7306 0.7307 AUD/JPY AUD/CAD AUD/NZD 76.25 76.32 0.9626 0.9634 1.0781 1.0795 AUD/CHF 0.6648 0.6653 The forward quotes in point form are as follows for the currency pairs AUD/USD and AUD/CHF as of September 21, 2020. Currency 1-month forward 3-month forward 1-year forward Pair points points points Bid Bid Ask Bid Ask Ask AUD/USD AUD/CHF 0.6000 0.7000 2.000 2.3000 4.000 5.5000 -6.4000 -6.2400 -16.9000 -16.5200 -70.5000 -68.5000 d) Calculate the outright forward rates for the currency pair AUD/CHF. e) Calculate the outright forward rates for the currency pair AUD/USD. f) Calculate the forward premium (discount) based on the rates calculated in e) above. g) Do the forward rates imply a strengthening or weakening of the USD with respect to the Australian dollar? Explain your logic.
May I get part C and D Given below are a set of foreign exchange quotes for several currencies against the Australiandollar as of August 5, 2020.Australian Dollar Exchange RatesCurrency Sell/buyUS, dollar 0.7143/0.7143UK, pound 0.5458/0.5459China, yuan Renminbi 4.9872/4.9907Hong Kong, dollar 5.5349/5.5364India, rupee 53.572/53.669Japan, yen 75.70/75.70Malaysia, ringgit 3.0104/3.0139Philippines, peso 34.953/35.135South Africa, rand 12.2272/12. 2340Switzerland, franc 0.6551/0.6551Thailand, baht 22.1892/22.2317(a) A friend of yours is totally confused by these rates. She is planning to visit Thailand next monthand wishes to purchase 10,000,000 Baht. How many Australian dollars does she require,assuming she is able to use the above quotes?(b) What are the direct quotes for the following currencies with respect to the Australian dollar?(i) UK pound(ii) Chinese Renminbi(iii) Indian rupee(iv) Malaysian ringgit(v) South African rand (c) Create a table showing the bid and ask quotes of each of…
1. – Using the following information, determine each one of the theoretical Exchange Rates (E.R.) for December of year 02 according to the Relative PPP Theory. MARKET MARKET E.R. E.R. COUNTRY CURRENCY СРI CPI Dec-01 Dec-02 Dec-01 Dec-02 Mexico МХР 231.89 264.3546 19.56 20.15 Turkey TRY (Lira) 498 527.88 5.9419 6.07673 Australia AUD 989 1038.45 1.7759 1.81183 Japan JPY 678 745.8 105.866 113.978 United Kingdom GBP 905.26 986.7334 0.5991 0.617849 South Korea KRW (Won) 795.4 874.94 1,658.62 1,793.37 Canada CAD 523.12 554.5072 1.3736 1.4942 U.S.A. USD 1.5 1.56
Problem 1. A currency trader has compiled the following currency quotes: USD/EUR ($/Euro USD/GBP ($/Â£) JPY/USD (Â¥) Spot rate $1.2139 $1.7730 115.674 6-month forward rate $1.2067 $1.7894 114.867 Which of the following statements regarding currencies is CORRECT? A) The pound is strong relative to the dollar and the dollar is strong relative to the yen. B) The euro is strong relative to the dollar and the yen is weak relative to the dollar. C) The euro is weak relative to the dollar and the yen is strong relative to the dollar. D) The dollar is strong relative to the pound and the dollar is weak relative to the euro. Problem 2. Mary Beth Morgan and Shaban Shoshi are currency traders for Mercury Forex Inc. They have compiled the following information concerning currencies in Sweden (SEK), New Zealand (NZD), and United States (USD). SEK/USD USD/NZD Spot bid rate 7.8927 $0.6994 Spot ask rate 7.9021 $0.7000 3-month forward bid rate 7.8780 $0.7010 3-month forward ask rate…
Given below are a set of foreign exchange quotes for several currencies against the Australiandollar as of August 5, 2020.Australian Dollar Exchange RatesCurrency Sell/buyUS, dollar 0.7143/0.7143UK, pound 0.5458/0.5459China, yuan Renminbi 4.9872/4.9907Hong Kong, dollar 5.5349/5.5364India, rupee 53.572/53.669Japan, yen 75.70/75.70Malaysia, ringgit 3.0104/3.0139Philippines, peso 34.953/35.135South Africa, rand 12.2272/12. 2340Switzerland, franc 0.6551/0.6551Thailand, baht 22.1892/22.2317(a) A friend of yours is totally confused by these rates. She is planning to visit Thailand next monthand wishes to purchase 10,000,000 Baht. How many Australian dollars does she require,assuming she is able to use the above quotes?(b) What are the direct quotes for the following currencies with respect to the Australian dollar?(i) UK pound(ii) Chinese Renminbi(iii) Indian rupee(iv) Malaysian ringgit(v) South African rand(c) Create a table showing the bid and ask quotes of each of the following currency…
Assume that USD is the home currency and exchange rates displayed in the market as INR 74.27-80/USD. Determine the Indirect Quote: INR 00.01346-0.01336/USD INR 74.27-74.80/USD USD 0.01346-0.01336/INR None of these
Assume that the following exchange rates exist for the U.S. dollar ($), Euros (€) and the British Pound (£). $/€ Citibank Lloyds Bank Mitsubishi Bank $/£ $1.9324 $1.9324 $732,212.21 $500,000 $300,000 $159,223 €/£ €1.9405 €1.9405 $0.2667 $0.2667 If you are an arbitrageur that starts with $1,000,000 you will end up with the arbitrage loss of?
Introduction to Exchange Rates and the Foreign Exchange Market - EOC Refer to the exchange rates given in the table to answer the questions. Please round your answer to the nearest ten thousandths. Country (currency) January 20, 2016 FX per $ January 20, 2015 FX per £ FX per € FX per $ Australia (dollar) 1.459 2.067 1.414 1.223 Canada (dollar) 1.451 2.056 1.398 1.209 Denmark (krone) 6.844 9.694 7.434 6.430 Eurozone (euro) 0.917 1.299 1.000 0.865 Hong Kong (dollar) 7.827 11.086 8.962 7.752 India (rupee) 68.05 96.39 71.60 61.64 Japan (yen) 116.38 164.84 136.97 118.48 Mexico (peso) 18.60 26.346 16.933 14.647 Sweden (krona) 8.583 12.157 9.458 8.181 United Kingdom (pound) 0.706 1.000 0.763 0.600 United States (dollar) 1.000 1.416 1.156 1.000 a. What was the US dollar to Japanese yen exchange rate on January 20, 2016? 116.38 Es Incorrect b. What was the US dollar to Japanese yen exchange rate on January 20, 2015? ES: 118.48 Incorrect c. What was the percentage change in the value of the US…
Help me understand how to interpret the following currency pairs(in a much simplified way) a)€1/$1.1837 €1/£0.7230 £1/$1.6388 b)Spot rate $1/Kes 76.22-92
TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the US Dollar is equal to each of the currencies below it. Therefore $1 = .76 £ or $1 = .89 €. Exchange Rate Table for Month 1 US Dollar $1 = British Pound 1 £ = Chinese Yuan 1 Y = Japanese Yen 1 ¥ = Euro 1€ US Dollar --- 1.32 .16 .0088 1.13 British Pound .76 --- .12 .0067 .85 Chinese Yuan 6.37 8.46 --- .056 7.21 Japanese Yen 113.04 149.55 17.75 --- 127.55 Euro .89 1.17 .14 .0078 --- Exchange Rate Table for Month 2 US Dollar $1 = British Pound 1 £ = Chinese Yuan 1 Y = Japanese Yen 1 ¥ = Euro 1€ US Dollar --- 1.40 .20 .0080 1.17 British Pound .70 --- .11 .0065 .89 Chinese Yuan 6.20 8.72 --- .062 7.59 Japanese Yen 116.24 146.89 16.32 --- 117.2 Euro .92 1.11 .15 .0078 --- An American company contracts a…
TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the US Dollar is equal to each of the currencies below it. Therefore $1 = .76 £ or $1 = .89 €. Exchange Rate Table for Month 1 US Dollar $1 = British Pound 1 £ = Chinese Yuan 1 Y = Japanese Yen 1 ¥ = Euro 1€ US Dollar --- 1.32 .16 .0088 1.13 British Pound .76 --- .12 .0067 .85 Chinese Yuan 6.37 8.46 --- .056 7.21 Japanese Yen 113.04 149.55 17.75 --- 127.55 Euro .89 1.17 .14 .0078 --- Exchange Rate Table for Month 2 US Dollar $1 = British Pound 1 £ = Chinese Yuan 1 Y = Japanese Yen 1 ¥ = Euro 1€ US Dollar --- 1.40 .20 .0080 1.17 British Pound .70 --- .11 .0065 .89 Chinese Yuan 6.20 8.72 --- .062 7.59 Japanese Yen 116.24 146.89 16.32 --- 117.2 Euro .92 1.11 .15 .0078 --- A currency depreciates (or gets…
TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the US Dollar is equal to each of the currencies below it. Therefore $1 = .76 £ or $1 = .89 €. Exchange Rate Table for Month 1 US Dollar $1 = British Pound 1 £ = Chinese Yuan 1 Y = Japanese Yen 1 ¥ = Euro 1€ US Dollar --- 1.32 .16 .0088 1.13 British Pound .76 --- .12 .0067 .85 Chinese Yuan 6.37 8.46 --- .056 7.21 Japanese Yen 113.04 149.55 17.75 --- 127.55 Euro .89 1.17 .14 .0078 --- Exchange Rate Table for Month 2 US Dollar $1 = British Pound 1 £ = Chinese Yuan 1 Y = Japanese Yen 1 ¥ = Euro 1€ US Dollar --- 1.40 .20 .0080 1.17 British Pound .70 --- .11 .0065 .89 Chinese Yuan 6.20 8.72 --- .062 7.59 Japanese Yen 116.24 146.89 16.32 --- 117.2 Euro .92 1.11 .15 .0078 --- An American family goes on vacation…