Question

In: Finance

1. Given below are a set of foreign exchange quotes for several currencies against the Australian...

1. Given below are a set of foreign exchange quotes for several currencies against the Australian dollar as of August 5, 2020.

Australian Dollar Exchange Rates

Currency Sell/buy
US, dollar 0.7143/0.7143
UK, pound 0.5458/0.5459
China, yuan Renminbi 4.9872/4.9907
Hong Kong, dollar 5.5349/5.5364
India, rupee 53.572/53.669
Japan, yen 75.70/75.70
Malaysia, ringgit 3.0104/3.0139
Philippines, peso 34.953/35.135
South Africa, rand 12.2272/12. 2340
Switzerland, franc 0.6551/0.6551
Thailand, baht 22.1892/22.2317

(a) A friend of yours is totally confused by these rates. She is planning to visit Thailand next month and 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 pairs:

(i) GBP/CHF

(ii) PHP/THB

(iii) HKD/MYR

(iv) JPY/INR

(v) RMB/ZAR

(d) On August 5, 2020, you received 100,000 ZAR. Using the rates in the above chart how many AUD will you receive upon selling this?

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

1. Given below are a set of foreign exchange quotes for several currencies against the Australian...
1. Given below are a set of foreign exchange quotes for several currencies against the Australian dollar as of August 5, 2020. Australian Dollar Exchange Rates Currency Sell / buy US, dollar 0.7143/0.7143 UK, pound   0.5458/0.5459 China, yuan Renminbi   4.9872/4.9907 Hong Kong, dollar 5.5349/5.5364 India, rupee   53.572/53.669 Japan, yen   75.70/75.70 Malaysia, ringgit 3.0104/3.0139 Philippines, peso   34.953/35.135 South Africa, rand   12.2272/12. 2340 Switzerland, franc 0.6551/0.6551 Thailand, baht 22.1892/22.2317 (c) Create a table showing the bid and ask quotes of each of...
Consider the prices of a U.S. dollar in the following currencies in a foreign-exchange market: Australian...
Consider the prices of a U.S. dollar in the following currencies in a foreign-exchange market: Australian dollar (A$) = 1.35 and Swiss franc (CHF) = 0.90. i) What characteristics does a foreign-exchange market possess? Name any two. ii) What is the price of a Swiss franc in Australian dollars? iii) Consider an Australian investor who is deciding between investing domestically (i.e. within Australia) or in Switzerland. The investor is only interested in the return his investment will yield in 12-months....
The foreign exchange quotes are given below: Braggart Bank 100.80 yen/$ Thrifty Bank 100.55 yen/$ •...
The foreign exchange quotes are given below: Braggart Bank 100.80 yen/$ Thrifty Bank 100.55 yen/$ • If we assume no transaction costs, there is evidently an opportunity for arbitrage here. • If an arbitrageur started with $10,000, exactly how would she make profits and how much profit would she make? • As many traders engage in arbitrage what do you expect to see in the above quotes at these two banks? • If there is a 12.5 basis points transaction...
21-1 Assume the foreign exchange selling rates shown below for a few selected currencies US $...
21-1 Assume the foreign exchange selling rates shown below for a few selected currencies US $ equivelant a-British Pounds $1.4022 b-Indian Rupees $0.0153 c-Japanese Yen $0.0094 d-Australian Dollars $0.7716 e-Mexican Pesos $0.0538 f-Israeli Shekels $0.2878 Calculate the number of the following foreign currencies that can be bought with 1 million US dollars a-British Pounds b-Indian Rupees c-Japanese Yen d-Australian Dollars e-Mexican Pesos f-Israeli Shekels I assume it is just $1000000*exchange rate of each country but want to be sure. Please...
a. The Australian dollar against the US dollar (and against other major currencies) has appreciated in...
a. The Australian dollar against the US dollar (and against other major currencies) has appreciated in recent months (mid-March 2020 to early June 2020). Identify the underlying drivers and the implications of this rising exchange rate in Australia.
Shown below are exchange rates for several currencies.   US$ per 1 euro US$ per 1 franc...
Shown below are exchange rates for several currencies.   US$ per 1 euro US$ per 1 franc Mexican peso per US$1 Spot rate 1.21 1.03 19.68 30-day forward rate 1.19 1.06 20.15 60-day forward rate 1.15 1.07 21.28 A U.S. company purchases goods from several foreign companies with payment due in euros, francs, and pesos.  Would the company be better off paying any of the suppliers now or should it wait 60 days? Why?
please answer both!!! rating will be given, much appreciated 1- Currencies – U.S. dollar foreign-exchange rates....
please answer both!!! rating will be given, much appreciated 1- Currencies – U.S. dollar foreign-exchange rates. May 5, 2011 Country/currency………….in US$............per US$ British Pound………………1.5347…………0.6516 Norwegian Kroner………...0.1690…………5.9173 Thai Baht…………………..0.0310…………32.250 Suppose a Big Mac costs $3.27 in Boston, and 101 Thai Baht in Thailand. In this circumstance, what can we say is TRUE? a. Purchasing Power Parity does not hold, and Big Macs are relatively expensive in Thailand b. Purchasing Power Parity holds, and Big Macs are relatively expensive in Thailand c....
please answer both, ratting will be given, much appreciated 1- Currencies – U.S. dollar foreign-exchange rates....
please answer both, ratting will be given, much appreciated 1- Currencies – U.S. dollar foreign-exchange rates. May 5, 2011 Country/currency………….in US$............per US$ British Pound……………....1.5347…………0.6516 Norwegian Kroner………...0.1690…………5.9173 Thai Baht…………………..0.0310………....32.250 The price of an ounce of gold in New York is $1,950, and the price of the same ounce of gold in London is 1,285 British Pounds. Using the exchange rates above, what would you predict would occur in well-functioning markets based upon this information? a. The price of gold will fall...
1) The foreign exchange market is in equilibrium when deposits of all currencies offer the same...
1) The foreign exchange market is in equilibrium when deposits of all currencies offer the same expected rate of return. The condition that the expected returns on deposits of any two currencies are equal when measured in the same currency is called the interest parity condition. Consider the following two currencies, the dollar ($) and the euro (€). Let R$ and R€ represent the interest rates on dollar deposits and euro deposits respectively and let E$/€ represent the current exchange...
Spot and 90-day forward exchange rates for several major currencies are shown below. For each pair,...
Spot and 90-day forward exchange rates for several major currencies are shown below. For each pair, calculate the percentage forward premium or discount, expressed at an annual rate. So, what do you think the prospects of the different currencies are? Currency Spot rate, as of 9/26 90-day Forward, as of 9/26 Euro (EUR) $1.1468/EUR $1.1454/EUR Swiss Franc (SF) SF 1.3425/$ SF 1.3395/$ Japanese Yen (JPY) ¥ 111.83/$ ¥111.6615/$ British Pound (GBP) $1.65955/GBP $1.6488/GBP Hint: Use the following rules Direct quotes:...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT