# Refer to table 61 the current spot rate of dollars

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42) Refer to Table 6.1. The current spot rate of dollars per pound as quoted in a newspaper is ________ or ________. A) £1.4484/\$; \$0.6904/£ B) \$1.4481/£; £0.6906/\$ C) \$1.4484/£; £0.6904/\$ D) £1.4487/\$; \$0.6903/£ Answer:
C Topic: Spot Rate Calculation Skill: Analytical 43) Refer to Table 6.1. The one-month forward bid price for dollars as denominated in Japanese yen is ________.
D Topic: Forward Rate Skill: Analytical 44) Refer to Table 6.1. The ask price for the two-year swap for a British pound is ________.
B Topic: Swap Rates Skill: Analytical
10 45) Refer to Table 6.1. According to the information provided in the table, the 6-month yen is selling at a forward ________ of approximately ________ per annum. (Use the mid rates to make your calculations.)
C Topic: Forward Premium Calculation Skill: Analytical 46) Refer to Table 6.1. Cross rates A) are often reported in the form of a matrix in the financial newspapers. B) can be used to check on opportunities for intermarket arbitrage. C) for the spot market in the table are ⁵188.10/³ (using the mid rates). D) are all of the above. Answer:
D Topic: Cross Rates Skill: Recognition 47) Given the following exchange rates, which of the multiple-choice choices represents a potentially profitable intermarket arbitrage opportunity? ¥129.87/\$ euro 1.1226/\$ euro 0.00864/¥
B Topic: Currency Arbitrage Skill: Analytical 48) For arbitrage opportunities to be practical,
D Topic: Currency Arbitrage Skill: Conceptual
11 49) The U.S. dollar suddenly changes in value against the euro moving from an exchange rate of \$0.8909/euro to \$0.08709/euro. Thus, the dollar has ________ by ________.
A Topic: Foreign Exchange Skill: Analytical 50) When the cross rate for currencies offered by two banks differs from the exchange rate offered by a third bank, a triangular arbitrage opportunity exists.
Topic: Triangular Arbitrage Skill: Recognition 51) Most transactions in the interbank foreign exchange trading are primarily conducted via telecommunication techniques and little is conducted face-to-face.
Topic: Interbank Foreign Exchange Skill: Recognition 52) Global daily foreign exchange turnover (combined swaps, spot, and forward transactions) has declined from roughly \$1,500 billion in 2001, to \$1,200 in 2004, to \$1,000 in 2007.
Topic: Daily Foreign Exchange Skill: Recognition 53) Given the following pair wise exchange rates, estimate the cross-rate of pounds per euro. \$0.8410/£ \$1.2223/euro
C Topic: Cross Rates Skill: Analytical