{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

BUS428 test 1 - 1 Relative to the spot price the forward...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Relative to the spot price, the forward price will be a. Usually less than the spot price b. Usually greater than the spot price c. Usually equal to the spot price d. Usually less than or greater than the spot price more often it is equal to the spot price 2. The UD/$ spot exchange rate is AUD1.60/$ and the SF/$ is SF1.25/$. The AUD/SF cross exchange rate is: a. 0.7813 b. 2.0000 c. 1.2800 d. 0.3500 3. The Singapore dollar-US dollar (S$/$) spot exchange rate is S$1.60/$, the Canadian dollar-US dollar (CD/$) spot rate is CD1.33/$ and the Singapore dollar-Canadian dollar (S$/CD) spot rate is S$1.15/CD. Determine the triangular arbitrage profit that is possible if you have $1,000,000. 4. The forward market
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}