Question

A ________ transaction in the interbank market is the simultaneous purchase and sale of a given...

A ________ transaction in the interbank market is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates.

Select one:

A. spot

B. futures

C. forward-forward

D. swap

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Inter-bank forex market is electronic transfer of foreign currencies between banks
Under this Spot is converting one currency into another, the very same day, instantaneous
In Futures & forward trading , the parties concerned transact at today's value, some deal tp take place at an agreed date , in future.
Options A,B & C are not the answers.
So, the answer is
D. Swap--
FX swap which is simultaneous purchase and sale of a given amount of foreign exchange for two different value dates
ie.Simultaneous lending & borrowing of the equivalent amounts , in two different currencies
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
When the foreign exchange (FX) futures market is used for price discovery: One will generally not...
When the foreign exchange (FX) futures market is used for price discovery: One will generally not see steadily appreciating or depreciating pricing patterns, with price discovery occurring on contract expiration dates in the FX market. FX forward prices are subjective predictors of future spot exchange rates. The pattern of the prices of these contracts provides information as to the market’s current belief about the relative future value of one currency versus another at the scheduled expiration dates of the contracts....
A foreign currency __ contract calls for the future delivery of a standard amount of foreign...
A foreign currency __ contract calls for the future delivery of a standard amount of foreign exchange at a fixed time,place,and price A. Futures B. Forward C. Option D. Swap
19-) For a firm that competes internationally to sell its products, a depreciation of its domestic...
19-) For a firm that competes internationally to sell its products, a depreciation of its domestic currency relative to markets where the firm exports goods, should eventually result in ________ sales at home and ________ sales abroad, other things equal. Select one: a. greater; greater b. fewer; greater c. fewer; fewer d. greater; fewer 20-) A ________ transaction in the foreign exchange market requires delivery of foreign exchange at some future date. Select one: a. swap b. forward c. currency...
A covered call position is A. the simultaneous purchase of the call and the underlying asset....
A covered call position is A. the simultaneous purchase of the call and the underlying asset. B. the purchase of a share of stock with a simultaneous sale of a put on that stock. C. the short sale of a share of stock with a simultaneous sale of a call on that stock. D. the purchase of a share of stock with a simultaneous sale of a call on that stock. E. the simultaneous purchase of a call and sale...
21-) Given the following exchange rates, what arbitrage profit is available if you have $1 million?...
21-) Given the following exchange rates, what arbitrage profit is available if you have $1 million? ¥129.87/$, €1.1226/$, ¥115.74/€ Select one: a. $259,652 b. $460 c. -$460 d. $878 30-) The current U.S. dollar-yen spot rate is 125¥/$. If the 90-day forward exchange rate is 127 ¥/$ then the yen is selling at a per annum forward ________ of ________. Select one: a. premium; 1.57% b. discount; 6.30% c. premium; 6.30% d. discount; 1.57% 33-) Sarah bought a 3-month British...
Barry speculates in the foreign currency exchange market. Currently the spot price for the Japanese yen...
Barry speculates in the foreign currency exchange market. Currently the spot price for the Japanese yen is ¥129/$ and the 6-month forward rate is ¥128 /$. Barry believes the yen will become ¥126.00/$ in the next six months. To profit as a speculator, Barry should ________ at ________ . Select one: a. buy dollars; the forward rate b. sell yen; the forward rate c. buy yen; the forward rate d. buy dollars; spot rate
36-) Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and...
36-) Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and sell. Foreign exchange ________, on the other hand, earn a profit by bringing together buyers and sellers of foreign currencies and earning a commission on each sale and purchase. Select one: a. speculators; arbitrageurs b. dealers; brokers c. central banks; treasuries d. brokers; dealers 38-) A country's currency that strengthened relative to another country's currency by more than that justified by the differential in...
Maria Gonzalez and Ganado. Ganado the ?U.S.-based company discussed in this chapter—has concluded another large sale...
Maria Gonzalez and Ganado. Ganado the ?U.S.-based company discussed in this chapter—has concluded another large sale of telecommunications equipment to Regency? (U.K.). Total payment of ?£3,000,000 is due in 90 days. Maria Gonzalez has also learned that Ganado will only be able to borrow in the United Kingdom at 14.681?% per annum? (due to credit concerns of the British? banks). Given the exchange rates and interest rates in the popup? window, compare alternate ways below that Ganado might hedge its...
Which of the following is not accurate regarding foreign exchange markets? Select one: a. All of...
Which of the following is not accurate regarding foreign exchange markets? Select one: a. All of the answers are accurate b. spot foreign exchange transactions involve the immediate exchange of currencies at current exchange rates c. forward foreign exchange transactions involve the exchange of currencies at a specified exchange rate at a specific date in the future d. Foreign exchange risk is the risk that cash flows will vary as the actual amount of U.S. dollars received on a foreign...
3. You are concerned about your transaction exposure on a recent purchase from an exporter in...
3. You are concerned about your transaction exposure on a recent purchase from an exporter in Great Britain. The invoice, just received, is for 275,000 pounds sterling payable in 90 days, which will be about mid-June. The current exchange rate is $1.35 per pound sterling, and you fear that the dollar will depreciate against the pound due to the relatively low interest rates currently prevailing in the United States. The following forward rate is $1.38. a.  What is the cost of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT