Forward quotes:
a) What is a 90 days forward quote if direct euro for pound
spot rate is 1.5432 and euro trades at 2.46% forward
discount?
b) What is a 30 days forward quote if the indirect dollar for
Swiss franc quote is 0.9753 and Swiss franc trades at 1.35% forward
premium?
c) What is a 60 day forward quote if the price of a US dollar
in Geneva is 1.0204-1030 and 60 day points are 35-43?
d) What is...
Suppose the spot quote on the euro is $0.9302-12 and the spot
quote on the Swiss franc is $0.6180-88. Compute the percentage
bid-ask spreads on the euro and the franc, then calculate the
direct spot quote for the franc in Paris.
2. Suppose the spot quote on the euro is $0.9302-18 and the spot
quote on the Swiss franc is $0.6180-90. Compute the percentage
bid-ask spreads on the euro and the franc, then calculate the
direct spot quote for the franc in Paris.
The dollar cost of the Euro is $1.19.a. You are planning a trip to Europe and read that hotel
charges 125 euros per night. What is the cost to you in
dollars?b. Your dollar will buy how many dollars?
Suppose the U.S. dollar-euro exchange rate is 1.1 dollars per
euro, and the U.S. dollar-Mexican peso rate is 0.1 dollars per
peso. What is the euro-peso rate?
____ euros per Mexican peso. (Enter your response rounded to
three decimal places.)
The euro currently trades at $1.0231. The dollar risk-free rate
is 4 percent, and the euro risk-free rate is 5 percent. Six-month
forward contracts are quoted at a rate of $1.0225. Indicate how you
might earn a risk-free profit by engaging in a forward contract.
Clearly outline the steps you undertake to earn this risk-free
profit.
If the euro depreciates against the U.S. dollar, can a dollar
buy more or fewer euros as a result? Explain.
I know the answer and how to explain it pretty well:
Basically as the currencies change in relation to one another,
the purchasing power of dollar increases against euro. Therefore,
the dollar gets more valuable against the euro. This means a dollar
can buy more euros after depreciation of euro against it.
My issue is that the post has to...
The dollar is said to depreciate against the euro if
Select one:
a. the exchange rate falls. Other things the same, it will cost
fewer euros to buy U.S. goods.
b. the exchange rate falls. Other things the same, it will cost
more euros to buy U.S. goods.
c. the exchange rate rises. Other things the same, it will cost
fewer euros to buy U.S. goods.
d. the exchange rate rises. Other things the same, it will cost
more euros...
If the British pound and Euro are both appreciating relative to
the dollar, how does this impact exports and imports, AD and GDP?
What should the Fed. due to respond?