Assignment $5$

Exercise $1$

Given are the quotes for Australian dollar $($AUD$),$ Pound sterling $($UKP$)$ and US dollar $($USD$).,$ USD $/$ AUD $=0\mathrm{.}71$; $US\frac{D}{U}KP=1\mathrm{.}35$;$0\mathrm{.}5312UK\frac{P}{A}UD.$

a$.$ Is there are arbritrage opportunity?

b$.$ What is the arbritrage profit, if a trader is ready to invest $$50,000?$

Exercise $2$

From the given forex quotes: $$0\mathrm{.}75/$SG$ & $$\mathrm{.}014/$INR

What is the cross rate of the Indian rupee in terms of the Singapore dollar?

If F$90[$ SG$ $0\mathrm{.}0179/$ INR $]$ and spot rate is $[$ SG$ $0\mathrm{.}0186/$ INR$].$ What is the annualized forward premium or discount of the INR?

Exercise $3$

Given the bank quotes for Swiz franc $($SWF$),$ Indian Rupees $($INR$)$ and USD

$\backslash$table$[[$Country$,$AMERCIAN TERMS,EUROPEAN TERMS$],[,$BID,ASK,BID,ASK$],[$SWF$,,,0\mathrm{.}9422,0\mathrm{.}9515],[$INR$,,,76\mathrm{.}1010,76\mathrm{.}5538]]$

Complete the American terms for the currencies in the given table?

What is the BID cross exchange rate for SWF priced in INR?

What is the ASK cross exchange rate for SWF priced in INR?

Exercise $4$

Russian Rubble $($RUB$)$ was trading on

${25}^{th}$ February $2022$:$83\mathrm{.}82$ RUB $\frac{?}{?}$$

and if the recent unrest between Russia and Ukraine, has led RUB to discount at $28\mathrm{.}63\%$ in March. What is the approximate value of RUB $\frac{?}{?}$$ in March?