In the interbank market the standard size of a trade

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Chapter 19 / Exercise 19-2
Fundamentals of Financial Management
Brigham Expert Verified
28. In the Interbank market, the standard size of a trade among large banks in the major currencies is A. for the U.S.-dollar equivalent of \$10,000,000,000. B. for the U.S.-dollar equivalent of \$10,000,000. C. for the U.S.-dollar equivalent of \$100,000. D. for the U.S.-dollar equivalent of \$1,000.
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Chapter 19 / Exercise 19-2
Fundamentals of Financial Management
Brigham Expert Verified
Chapter 05 - The Market for Foreign Exchange 29. A dealer in British pounds who thinks that the pound is about to appreciate
30. A dealer in British pounds who thinks that the pound is about to depreciate
31. A dealer in pounds who thinks that the exchange rate is about to increase in volatility
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Chapter 05 - The Market for Foreign Exchange 32. Using the table shown, what is the spot cross-exchange rate between pounds and euro? A. €1.00 = £0.75 B. £1.33 = €1.00 C. £1.00 = €0.75 D. none of the above
33. The dollar-euro exchange rate is \$1.25 = €1.00 and the dollar-yen exchange rate is ¥100 = \$1.00. What is the euro-yen cross rate?
34. Suppose you observe the following exchange rates: €1 = \$1.25; £1 = \$2.00. Calculate the euro-pound exchange rate.
35. The AUD/\$ spot exchange rate is AUD1.60/\$ and the SF/\$ is SF1.25/\$. The AUD/SF cross exchange rate is _____.
36. Suppose you observe the following exchange rates: €1 = \$1.50; £1 = \$2.00. Calculate the euro-pound exchange rate. A. €1.3333 = £1.00 B. £1.3333 = €1.00 C. €3.00 = £1 D. €1.25 = £1.00
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Chapter 05 - The Market for Foreign Exchange 37. Suppose you observe the following exchange rates: €1 = \$1.60; £1 = \$2.00. Calculate the euro-pound exchange rate.
38. Suppose you observe the following exchange rates: €1 = \$1.50; ¥120 = \$1.00. Calculate the euro-pound exchange rate.
39. Suppose you observe the following exchange rates: €1 = \$1.45; £1 = \$1.90. Calculate the euro-pound exchange rate.
40. What is the BID cross-exchange rate for Swiss Francs priced in euro Hint : Find the price that a currency dealer will pay in euro to buy Swiss francs. ? A. €0.5386/CHF B. €0.5389/CHF C. €0.5463/CHF D. €0.5466/CHF
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Chapter 05 - The Market for Foreign Exchange
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