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Spot USDJPY is trading at 113.15 and the 3
month forward points are -22. The
exchange rate for the long leg of a 3
month swap is
Step by step
Solved in 2 steps
- If spot AUD/USD = 0.7351, 255 day interest rates are : AUD = 2%, USD = 2.9%, the implied 255 day AUD/USD FX swap rate is: a. -0.0047 b. 0.0048 c. 0.0049 d. -0.0046 PLEASE EXPLAIN HOW YOU COME UP WITH THE ANSWER, THANK YOU1. The spot market quotes the exchange rate of the GHS to a CADS as GHS 3.562 while the 90-day forward quotes it at GH3.425. Required: Calculate the annualized forward premium or discount. 2. Suppose bid price for £=GHS6.27, ask price = GHS6.316. Required: Calculate the bid/ask spread.) In another case are these quotes: Spot rate €1.2562/£; 1 month forward €1.2662/£. Which of the two currencies is trading at forward premium?
- Use the data from Q5, and given the following annualized interest rates: r(30) = 4.0%; r(120) = 4.5%; r(210) = 5.0%, and; r(300) = 5.5% sixty days after the initiation of the pay-fixed swap. If the pay-fixed and receive-floating swap is to mark-to-the-market now, who pays whom and how much? Use $5m notional principal. Pay-fixed leg pays $24,214.41 to pay-floating leg. Pay-floating leg pays $24,214.41 to pay-fixed leg. Pay-fixed leg pays $25,455.45 to pay-floating leg. Pay-floating leg pays $25,455.45 to pay-fixed leg.Refer to the following closing prices of USDTWC and XYZUSD. Compute for the corresponding %MTD change for currency XYZ against USD. Date USDTWC XYZUSD 1.800 1.650 1.600 1.250 1.200 1.300 12/31/2020 100.000 1/29/2021 2/1/2021 97.800 97.400 2/26/2021 3/1/2021 96.200 95.500 TODAY 94.750 XYZ appreciated against USD by 8.33% O XYZ appreciated against USD by 4.00% O XYZ depreciated against USD by 8.33% O XYZ depreciated against USD by 4.00% ASSUMING ALL ELSE EQUAL - according to the survey conducted by the Bangko Sentral ng Pilipinas, 49 out of 56 Philippine-based banks expect that the PHP will remain strong against the USD until the end of the year. SOLELY BASED ON THIS INFORMATION, which of the following statement is accurate? O The PHP is already expensive, hence it is due for a correction in the medium-term. The PHP will continue to appreciate against USD given the positive market expectations on the currency. The PHP is not affected by survey results since it is the demand and the…Suppose that a commodity’s respective forward prices for 1 year and 2 years are $150 and $158. The 1-year effective annual interest rate is 5.9%, and the 2-year interest rate is 6.6%. You will pay a fixed rate of $153.85906 in a 2-year swap and receive the floating rate. At the time you enter the swap contract, its value to you is... A.$0.0084 B.$–0.0084 C.$0.0051 D.. $–0.0051 E.$000000
- ) In another case are these quotes: Spot rate €1.2562/£; 1 month forward €1.2662/£ Which of the two currencies is trading at forward discount? And whyThe €/$ spot exchange rate is $1.50/€ and the 90-day forward premium is 10 percent. Find the 90-day forward price. Multiple Choice $1.65/€ $1.5375/€ $1.9125/€ none of the options.The following table shows the midmarket (i.e., average of the bid and offer) for the current YEN/GBP spot exchange rate as well as for GBP and YEN 270-day LIBOR (annualized): Spot (YEN/GBP) 270-day LIBOR (GBP) 270-DAY LIBOR (YEN) 1.2089 5.25% 1.25% 1. What is the forward premium or discount for a 270-day forward contract for YEN/GBP?
- A 2-year swap based on LIBOR is entered into on 30/6/2010 with current spot 3 month LIBOR at 0.54%. The swap is based on a notional principal of $100m What is the swap rate?Q5: Current spot rates are as follows: USD/CHF 1.5384/89 USD/SGD 2.3895/05 EUR/USD 0.9678/83 AUD/USD 0.5438/43 What is the two-way price for CHF/SGD? On which side of this price would the customer sell SGD? What is the two-way price for EUR/AUD? On which side of this price would the customer buy EUR? What is the two-way price for EUR/CHF? On which side of this price would the customer buy CHF? What is the two-way price for CHF/AUD? On which side of this price would the customer sell CHF?The Spot Exchange Rate is OMR 0.385030 = 1 USD and 90 days forward rate is OMR 0.394030 = 1USD (Home Currency is OMR, which is given as Direct quotes). Does the OMR is trading at premium or discount in 90 days forward market?