Question

As a foreign exchange trader at Sumitomo Bank, you have a customer who would like spot and 30-day forward yen quotes on Australian dollars. Current market rates are
Spot ........ 30-day
¥101.37 − 85/U.S.$1 .. 15–13
A$1.2924 − 44/U.S.$1 .. 20–26
a. What bid and ask yen cross rates would you quote on spot Australian dollars?
b. What outright yen cross rates would you quote on 30-day forward Australian dollars?
c. What is the forward premium or discount on buying 30-day Australian dollars against yen delivery?



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  • CreatedJune 27, 2014
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