1. [5 Points] The cash manager at AmFlex Company needs to buy 1,000,000 British pounds to...

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1. [5 Points] The cash manager at AmFlex Company needs to buy 1,000,000 British pounds to pay a British supplier. A currency broker quotes him a bid-ask rate of £0.4865-0.5116/$. What will be the dollar cost of the 1,000,000 pounds? 2. [5 Points] The spot and 60-day forward rates for the Polish Zloty (PLN) are USD 0.3075/PLN and USD 0.3120/PLN, respectively. Is the Zloty selling at a forward premium or discount? What is the annualized percentage forward premium/discount? 3. [5 Points] The bid and ask spot rates for the Japanese Yen per US dollar are ¥120.03/$ and 120.19/$, respectively. The 30-day swap points are 30/20. What are the 30-day bid and ask forward prices, respectively? 1. [5 Points] The cash manager at AmFlex Company needs to buy 1,000,000 British pounds to pay a British supplier. A currency broker quotes him a bid-ask rate of £0.4865-0.5116/$. What will be the dollar cost of the 1,000,000 pounds? 2. [5 Points] The spot and 60-day forward rates for the Polish Zloty (PLN) are USD 0.3075/PLN and USD 0.3120/PLN, respectively. Is the Zloty selling at a forward premium or discount? What is the annualized percentage forward premium/discount? 3. [5 Points] The bid and ask spot rates for the Japanese Yen per US dollar are ¥120.03/$ and 120.19/$, respectively. The 30-day swap points are 30/20. What are the 30-day bid and ask forward prices, respectively?

Answer rating: 100% (QA)

1 Dollar cost of 1000000 British pounds At the ask rate of 05116 the dollar cost of 1000000 pounds w... View the full answer