assume the Canadian dollar spot rate is 1.18c$/us$, the swiss spot rate is 1.29CHF/us$ and the...

assume the Canadian dollar spot rate is 1.18c$/us$, the swiss spot rate is 1.29CHF/us$ and the market cross rate is 1.11 chf/c$ a. calculate the implied cross-rate of CHF/c$ b calculate the triangular arbitrage profit, assume you have us$1000 to work with

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Assume the canadian spot rate is 1.18C$/US$, the swiss franc spot rate is 1.29CHF/US$ and the...

Assume the canadian spot rate is 1.18C$/US$, the swiss franc spot rate is 1.29CHF/US$ and the market cross rate is 1.11CHF/C$ A. Calculate the implied cross rate of CHF/C$. B. Calculate the triangular profit. Assume you have US $1,000 to work with. State the currencies you need to buy and sell in order to earn the arbitrage profit

The existing spot rate of the Canadian dollar is $.80. The premium on a Canadian dollar...

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Let us assume that around Dec. 2019, the spot exchange rate between the Swiss Franc and...

Let us assume that around Dec. 2019, the spot exchange rate between the Swiss Franc and U.S. dollar was 1.0485 (USD per SWF). Interest rates in the United States and Switzerland were 0.75% and 0.25% per annum, respectively with continuous compounding. Assume also that the four-month forward exchange rate was 1.0630 (US$ per SWF) 1. Is there an arbitrage opportunity for you to make money? (Hint: Recall how to find no-arbitrage forward price!) 2. If there is NO arbitrage opportunity,...

Q-2 (25p) Let us assume that around Dec. 2019, the spot exchange rate between the Swiss...

Q-2 (25p) Let us assume that around Dec. 2019, the spot exchange rate between the Swiss Franc and U.S. dollar was 1.0485 (USD per SWF). Interest rates in the United States and Switzerland were 0.75% and 0.25% per annum, respectively with continuous compounding. Assume also that the four-month forward exchange rate was 1.0630 (US$ per SWF). Is there an arbitrage opportunity for you to make money? (Hint: Recall how to find no-arbitrage forward price!) If there is NO arbitrage opportunity,...

Q6) In early 2012, the spot exchange rate between the Swiss Franc and U.S. dollar was...

Q6) In early 2012, the spot exchange rate between the Swiss Franc and U.S. dollar was 1.0404 ($ per franc). Interest rates in the U.S. and Switzerland were 0.25% and 0% per annum, respectively, with continuous compounding. The three-month forward exchange rate was 1.0300 ($ per franc). What arbitrage strategy was possible?

In early 2012, the spot exchange rate between the Swiss Franc and U.S. dollar was 1.0404...

In early 2012, the spot exchange rate between the Swiss Franc and U.S. dollar was 1.0404 ($ per franc). Interest rates in the U.S. and Switzerland were 0.25% and 0% per annum, respectively, with continuous compounding. The three-month forward exchange rate was1.0300 ($ per franc). What arbitrage strategy was possible? How does your answer change if the exchange rate is 1.0500 ($ per franc).

Suppose that the spot price of the Canadian dollar is U.S. $0.95 and that the Canadian...

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Suppose the exchange rate for the Canadian dollar (USD/CAD) is quoted as 1.34 in the spot...

Suppose the exchange rate for the Canadian dollar (USD/CAD) is quoted as 1.34 in the spot market and 1.30 in the 90-day forward market. Does the financial market expect the Canadian dollar to strengthen or weaken relative to the dollar?

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