Aussie dollar forward us per a us per a period bid

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Problem 5.11 Aussie Dollar Forward US$ per A$US$ per A$PeriodBid RateAsk Ratespot0.985100.985401 month0.981310.981652 months0.977450.977863 months0.973970.974416 months0.962410.9629512 months0.939600.9404524 months0.897700.89900a. What is the mid-rate for each maturity?b. What is the annual forward premium for all maturities?c. Which maturities have the smallest and largest forward premiums?Use the following spot and forward bid-ask rates for the U.S. dollar-Australian dollar (US$ per A$) exchange rate from December 10, 2010, to answer the following questionsNotes:b. Calculate the forward premium on the A$ (relative to the US$) based on the midrates.
c. Which maturities have the smallest and largest forward premiums?In absolute value, the 2 month forward rate has the largest premium, while the 24 month forward has the smallest premium.Use the following spot and forward bid-ask rates for the U.S. dollar-Australian dollar (US$ per A$) exchange rate from December 10, 2010, to answer the following questions
Problem 5.12 Transatlantic ArbitrageCitibank NYC Barclays LondonEUR/USD 0.7551-61 EUR/USD 0.7545-75The arbitrager cannot make a profit using these quotes.A corporate treasury working out of Vienna with operations in New York simultaneously calls Citibank in New York City and Barclays in London. The two banks give the following professional quotes at the same time on the euro:Using $1 million or its euro equivalent, show how the corporate treasury could make geographic arbitrage profit with the two different exchange rate quotes.

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