QUESTION 34 The spot rate for the MYR is MYR4.6926/ and the three-month forward rate is...
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QUESTION 34 The spot rate for the MYR is MYR4.6926/€ and the three-month forward rate is MYR4.6936/€. Your company is prepared to speculate that the MYR will move to MYR4.6976/€ by the end of three months. If your company is prepared to put MYR 1 million at risk on the deal, show how would you strategize to help your firm to make profit. Ignore all interest rate implications. QUESTION 34 The spot rate for the MYR is MYR4.6926/€ and the three-month forward rate is MYR4.6936/€. Your company is prepared to speculate that the MYR will move to MYR4.6976/€ by the end of three months. If your company is prepared to put MYR 1 million at risk on the deal, show how would you strategize to help your firm to make profit. Ignore all interest rate implications.
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values given in the question Spot rate 1 Euro MYR 46926 3 Month forward rate 1 ... View the full answer
Related Book For
Fundamentals Of Financial Management
ISBN: 9780273713630
13th Revised Edition
Authors: James Van Horne, John Wachowicz
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