homework 3 - Dustin Johnston FIN 471 1,000,000 USD = Buy...

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Dustin Johnston FIN 471 1. A. MXN/EUR MXN/USD 12.292 * USD/EUR 1.3609 = 16.7281828 TWD/AUD TWD/USD 30.395 * USD/AUD 0.9882 = 30.036339 TWD/EUR TWD/USD 30.395 * USD/EUR 1.3609 = 41.3645555 MXN/AUD MXN/USD 12.292 * USD/AUD 0.9882 = 12.1469544 MXN/TWD MXN/USD 12.292 / TWD/USD 30.395 = 0.40440861 AUD/EUR USD/AUD 0.9882 / USD/EUR 1.3609 = 0.726137115 B. Euro (1.3589 – 1.3609)/1.3609 * 12/3 = -0.5878% Australian dollar (0.9760 – 0.9882)/0.9882 * 12/3 = -4.9382% Mexican peso (12.292 – 12.381)/12.381 * 12/3 = -2.8730% Taiwanese dollar (30.395 – 30.331)/30.331 * 12/3 = 0.8440% 2.2.4727 – should be price Buy 12,292,000 MXN at MXN/USD 12.292, trade MXN for TWD at 2.48 for 30,484,160 TWD finally trade TWD back to USD at TWD/USD 30.395 netting 2933.3772 USD. B. 1,000,000 MXN Buy 2,480,000 TWD at 2.48, trade TWD to USD at TWD/USD 30.395 for USD 81592.3671, finally trade USD for MXN at 12.292, netting 2,933.3772 MXN. 3. 2.4727 – should be price 16.7281 – Should be price
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Unformatted text preview: Dustin Johnston FIN 471 1,000,000 USD = Buy 734,807.8477EUR at USD/EUR 1.3609, Buy 12,308,031.4497 MXN with EUR at 16.75 Mexican pesos per Euro. Buy 30,523,917.9954 TWD at 2.48 TWD per MXN Finally Exchange TWD into USD at TWD/USD 30.395 for USD4,241.4211 net profit. 4. 1,000,000 USD = Buy 734,807.8477EUR at USD/EUR 1.3609, Buy 12,308,031.4497 MXN with EUR at 16.75 Mexican pesos per Euro. Buy 30,523,917.9954 TWD at 2.48 TWD per MXN, buy AUD at 30.00 TWD for 1,017,463.9331AUD, finally exchange AUD for USD at USD/AUD 0.9882 for USD 5,457.8588 net profit. 5. 1,000,000 USD = Buy 734,807.8477EUR at USD/EUR 1.3609, Buy 12,308,031.4497 MXN with EUR at 16.75 Mexican pesos per Euro. Buy 30,523,917.9954 TWD at 2.48 TWD per MXN, buy AUD at 30.00 TWD for 1,017,463.9331AUD. Buy 742,674.4037 EUR at 1.37 AUD per EUR. Finally exchange EUR for USD at USD/EUR 1.3609 for USD 10,705.59604 net profit....
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homework 3 - Dustin Johnston FIN 471 1,000,000 USD = Buy...

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