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Sem 1 2007Spot rate:Bid: S.fr1.6075/$Ask: 1.6085/$Forward quotations in points are :1m: 10-15 3m:14-22; 6m: 20-30a.Calculate the forward outright quotes for the different maturitiesb.What do you observe about the spread. Suhggest any explanation for that.Sem 02 2007 Q2. Assume that one year interest rates ar 4.4% in Singapore and 1.75% in Japan.The spot rate between the yen and the Singapore dollarin Yen 82.5/S$. Assuming internationalFisher effect holds, whatshould the Yen/S$ exchange rate be one year hence?Asume that the Swiss franc, quoted as Sfr1.6351/A$ in Perth, suddenly appreciates toSfr1.5000/A$. What is the percentage increase in the Australian dollar value of the swiss Francdenominated accounts receivable and accounts payable held bu Australians?Q4.If the 3-month Japanese deposit rate is 3percent per annum lower than the 3-month Australiandollar deposit rate, Should the Japanese yen sell 3-month forward at a premium or discount? Byhow much and why?
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Exchange Rate, Foreign exchange market, United States dollar, ISO 4217, Swiss Franc