As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on Australian dollars Current market rates are 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 dolla...

a By means of triangular arbitrage we can calculate the market quotes for the Australian dollar in t ...

As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote

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As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on Australian dollars. Current market rates are: Spot 121.37-85/U.S.$1 A$1.1878-98/U.S.$1 30-day 15-13 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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Foundations Of Multinational Financial Management

ISBN: 9780470128954

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Authors: Alan C Shapiro, Atulya Sarin

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Question Posted: Dec 09, 2023 04:44 AM

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As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote

Question:

Spot ¥121.37-85/U.S.$1 A$1.1878-98/U.S.$1 30-day 15-13 20-26

Step by Step Answer:

a By means of triangular arbitrage we can calculate the market quotes for the Australian dollar in t...View the full answer

Foundations Of Multinational Financial Management

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