Exchange Rate Calculations Flashcards
A dealer provides spot rate quotes for the following currencies:
CNY/HKD: 0.8422
CNY/ZAR: 0.9149
CNY/SEK: 1.0218
The spot ZAR/HKD cross-rate is closest to:
A: 0.9205
B: 1.0864
C: 1.2978
A: 0.9205
A dealer provides spot rate quotes for the following currencies:
CNY/HKD: 0.8422
CNY/ZAR: 0.9149
CNY/SEK: 1.0218
Another dealer is quoting the ZAR/SEK cross-rate at 1.1210. The arbitrage profit that can be earned is closest to:
A. ZAR3671 per million Swedish krona traded
B. SEK4200 per million South African rand traded.
C. ZAR4200 per million Swedish krona traded.
C. ZAR4200 per million Swedish krona traded.
A BRL/MXN spot rate is listed by a dealer at 0.1378. The six-month forward rate is 0.14193. The six-month forward points are closest to: A. -41.3 В. +41.3 C. +299.7
В. +41.3
A three-month forward exchange rate in CAD/USD is listed by a dealer at 1.0123. The dealer also quotes three-month forward points as a percentage at 6.8 per-cent. The CAD/USD spot rate is closest to: A. 0.9478. В. 1.0550. C. 1.0862.
A. 0.9478
If the base currency in a forward exchange rate quote is trading at a forward dis-count, which of the following statements is most accurate?
A. The forward points will be positive.
B. The forward percentage will be negative.
C. The base currency is expected to appreciate versus the price currency.
B. The forward percentage will be negative.
A forward premium indicates:
A. an expected increase in demand for the base currency.
B. the interest rate is higher in the base currency than in the price currency.
C. the interest rate is higher in the price currency than in the base currency.
C. the interest rate is higher in the price currency than in the base currency.
The IPY/AUD spot exchange rate is 82.42, the Japanese yen interest rate is 0.15 percent, and the Australian dollar interest rate is 4.95 percent. If the interest rates are quoted on the basis of a 360-day year, the 90-day forward points in JPY/AUD would be closest to:
A. -377.0
B. -97.7
C. 98.9
B. -97.7
