Question

Question 2

You are a currency trader. You started the day with cash on hand of 1 million US Dollars and executed the following transactions throughout the day:

1. Bought EUR 150,000 at a rate of USD/ EUR spot 0.82/0.83
2. Bought GBP 100,000 at a rate of USD/ GBP spot 0.70/0.71
3. Bought EGP 2,000,000 at a rate of USD/ EGP 17.83/17.84
4. Bought 120,000 SAR at a rate of USD/ SAR 3.78/3.8
5. Bought 200,000 AED against EGP at a rate of AED/EGP 4.92/4.93
6. Bought 10,000 AUD against SAR at a rate of AUD/SAR 2.95/2.96
7. Bought 10,000,000 Yen against EUR at a rate of EUR/JPY 132/133
8. Bought 100,000 CAD against GBP at a rate of CAD/GBP 0.60/0.61

At the end of the day, you converted all currencies you have on hand into USD. The quoted exchange rates at end of day were:

EUR/USD: 1.23/1.25        USD/GBP: 0.71/0.72       USD/EGP: 17.63/17.68                    USD/SAR: 3.76/3.77

USD/AED: 3.67/3.68       USD/AUD: 1.38/1.39      USD/JPY: 113/114            USD/CAD: 1.3/1.31.

Required:

Calculate your total end of day profit / loss in US Dollars. (Show all steps & calculations)

Answer 1

After the calculations shown in photographs, the available USD is 982712.6. Hence there is a loss of approx 17287 USD in the above transactions.