Question

Japanese Yen to Canadian Dollar 78.87 JPY/CAD United States Dollar to Euro 1.16 USD/EUR Swiss Franc...

Japanese Yen to Canadian Dollar 78.87 JPY/CAD

United States Dollar to Euro 1.16 USD/EUR

Swiss Franc to Canadian Dollar 0.69 CHF/CAD

Swiss Franc to Euro 1.08 CHF/EUR.

Determine the implied USD/JPY cross rate. (2 POINTS)

Suppose that the JPY to USD exchange rate is 111 JPY/1 USD. Is there any arbitrage opportunity? Explain in words why you think that is the case. (2 POINTS)

Assume you have 520 JPY. What is your profit in JPY, (show your calculations)? (2 POINTS)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Currency Spot quote Euro (EUR/USD) 1.1278 - 1.1281 British pound (GBP/USD) 1.2845 - 1.2848 Swiss franc...
Currency Spot quote Euro (EUR/USD) 1.1278 - 1.1281 British pound (GBP/USD) 1.2845 - 1.2848 Swiss franc (USD/CHF) 1.0020 – 1.0022 Japanese yen (USD/JPY) 110.41 – 110.44 Dominican peso (USD/DOP) 50.540 – 50.600 Part 2. Forward exchange rates 1. If the 3-month forward bid and ask quotes for the British pound are 15 21, what are the 3-month forward bid and ask exchange rates? 2. How many US dollars will a customer that enters a 3-month forward contract to buy £1...
Construct cross-rate for bid & ask prices IF dollar-euro exchange rate is USD1.25 = EUR1.00 and...
Construct cross-rate for bid & ask prices IF dollar-euro exchange rate is USD1.25 = EUR1.00 and the dollar-Yen exchange rate is JPY200 = USD1.00. What is the EUR-JPY cross rate? USD equivalent Country BID ASK Switzerland (Franc) CHF $0.65/CHF $0.68/CHF Euro € $1.15/€ $1.2/€ Triangular Arbitrage Helen Depp, who trades at an FX cubicle in a big bank in UK notices the following exchange rates of the USD per pound and USD per euro. $1.2195/€ or €0.82/$ $1.2262/£     or £0.8155/$...
The following table contains information on spot and forward exchange rates among U.S. dollar (USD), Malaysian...
The following table contains information on spot and forward exchange rates among U.S. dollar (USD), Malaysian ringgit (MYR), Japanese yen (JPY) and Canadian dollar (CAD). Currencies 3-month forward rate Spot rate USD/MYR 4.3936 4.3610 USD/JPY 107.3333 107.6400 USD/CAD 1.3856 1.3839 The following table contains information on the 3-month nominal risk-free rate per annum for the four different currencies 3-month nominal risk-free rate MYR USD CAD JPY 4.00% 1.00% 1.50% 0.00% Note that the Japanese yen 3-month nominal risk-free rate is...
You are given the following exchange rate data:                         Canadian Dollar:    CAD 1.1280/USD   &nbs
You are given the following exchange rate data:                         Canadian Dollar:    CAD 1.1280/USD                           British Pound:        USD 1.8840/GBP                                                 (a) How many Canadian Dollars can be purchased with 1 British Pound? (b) If you learn that the cross rate quoted by the Bank is actually CAD 2.1280/GBP, what would be your triangular arbitrage profits if you could put USD $1,000,000 into this arbitrage? To get full credits, you need to include step by step instructions on how to carry out...
1. USD/Brazilian Real = 3.949, USD/Australian Dollar = 1.5, USD/Chinese Yuan = 5.817 What is the...
1. USD/Brazilian Real = 3.949, USD/Australian Dollar = 1.5, USD/Chinese Yuan = 5.817 What is the Australian Dollar/Chinese Yuan cross rate? Enter your answer rounded off to THREE decimal points. 2. Suppose the exchange rate for the Swiss Franc is quoted as SF 1.10 in the spot market and SF 0.97 in the 90-day forward market. Is the dollar selling at a premium or a discount relative to the franc? PREMIUM OR DISCOUNT 3. Suppose the exchange rate between U.S....
The following are quotes from a currency dealer in the New York currency market: Currency Spot...
The following are quotes from a currency dealer in the New York currency market: Currency Spot quote Australian dollar (AUD/USD) 0.7832 - 0.7834 Brazilian real (USD/BRL) 3.2335 - 3.2365 British pound (GBP/USD) 1.3507 - 1.3509 Canadian dollar (USD/CAD) 1.2555 - 1.2557 Euro (EUR/USD) 1.1948 - 1.1949 Japanese yen (USD/JPY) 111.44 - 111.45 Mexican peso (USD/MXP) 19.3653 - 19.3718 New Zealand dollar (NZD/USD) 0.7181 - 0.7184 Thai baht (USD/THB) 32.1240 - 32.1430 Egyptian pound (USD/EGP) 17.6860 - 17.8460 South Korean won...
Finance 1. What is the exchange rate between the Swiss Franc (CHF) and the dollar? 2....
Finance 1. What is the exchange rate between the Swiss Franc (CHF) and the dollar? 2. How many South African Rands (ZAR) can you buy with $500? 3. If you purchase New Zealand Dollar (NZD) 50,000 of supplies from New Zealandhow much will this cost in US$ today? 4. In the above problem what can you do if you do not have to pay for 30 days and you wanted to hedge your position? = ______________________________ What will it cost...
Question 1 You are responsible for managing a US toy manufacturer. Recently your market share has...
Question 1 You are responsible for managing a US toy manufacturer. Recently your market share has dropped dramatically due to strong pricing competition from a China toy manufacturer. What could the US toy manufacturer do to offset this? What kind of help could the US toy manufacturer seek? Question 2 (4 points) The Canadian dollar per U.S. Dollar spot rate today, 3/1/2017 is 1.3500 / 1.3525 Canadian dollars per U.S. Dollar. The spot rate on 2/1/2017 was 1.3435 / 1.3450...
1.Chapter 3, Question 6. Bid/Ask Spread Utah Bank’s bid price for Canadian dollars is $.7938 and...
1.Chapter 3, Question 6. Bid/Ask Spread Utah Bank’s bid price for Canadian dollars is $.7938 and its ask price is $.8100. What is the bid/ask percentage spread? 2.Chapter 3, Question 10. Indirect Exchange Rate If the direct exchange rate of the euro is $1.25, what is the euro’s indirect exchange rate? That is, what is the value of a dollar in euros? 3.Chapter 3, Question 11. Cross Exchange Rate Assume Poland’s currency (the zloty) is worth $.17 and the Japanese...
Question 1 Your friend from Netherlands is planning to visit you in the United States. You...
Question 1 Your friend from Netherlands is planning to visit you in the United States. You estimate the cost of her trip at $6,781. What is the cost to her in euros if 1 Euro = $1.2001? Question 2 You are planning to visit Japan in December. You estimate the cost of your trip to be $820. How many yen do you need to buy if the exchange rate is 1$ = 123.1 yen? Question 3 ABC Company has projected...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT