BAFI $3192$ Dealing Simulation

Corporation $2$

You are in charge of the treasury department of a major corporation in UK$-$Your company is a major player within the alternative energy industry.

$4,999,816\mathrm{.}00$

The firm will be receiving USD XXX $($Amount in US Dollar, which is the leftover from the practice trading session$)$ from headquarters in New York, USA.

Primary task: $($You should make a trade of cash spots$).$

$$249,990\mathrm{.}8$ USD

$-$You must convert $1/20$ of the number of US dollars to your local currency.

$-$Next, you need to purchase AUD $500,000(0\mathrm{.}5$ million Australian dollar$)$ to pay for raw

material purchases from Australia due within $2$ business days.

$-$You also must cover a EUR $100,000(0\mathrm{.}1$ million Euro$)$ equipment purchase from Germany.

Speculation task: $($You should trade with Forex, and you are limited to USD crosses only for the FOREX contracts$)$

$-$You are allowed to form a speculation strategy with different currencies only after you secure the necessary amount for foreign currencies for your primary tasks. $($There will be a $5\%$ penalty applied to your mark if you do not follow the rule$).$

$-$Before the end of the trading session, close your position by converting all of your currency back to US Dollar. $($There will be another $5\%$ penalty applied to your mark if you do not follow the rule$).$

$-$Provide trade notes for each transaction.

$-$Provide at least $3$ speculation trades.

$-$There is no limit for the amount of currency per transaction when converting US dollars to local currency $($for the $1^{st}$ primary task only$).$

$-$There is limit for the amount of currency per transaction when you convert your local currency to foreign currency for $2^{nd}$ and $3^{rd}$ primary task and speculation task:

Minimum deal amount of CNY $100,000(0\mathrm{.}1$ million Chinese yuan$)$; Maximum deal amount of CNY $200,000(0\mathrm{.}2$ million Chinese yuan$)$ per transaction.

Minimum deal amount of GBP $10,000(0\mathrm{.}01$ million Pound sterling$)$; Maximum deal amount of GBP $50,000(0\mathrm{.}05$ million Pound sterling$)$ per transaction.

Minimum deal amount of JPY $5,000,000(5$ million Japanese yen$)$; Maximum deal amount of JPY $20,000,000(20$ million Japanese yen$)$ per transaction.

Minimum deal amount of EUR $10,000(0\mathrm{.}01$ million Euro$)$; Maximum deal amount of EUR $50,000(0\mathrm{.}05$ million Euro$)$ per transaction.

Minimum deal amount of AUD $10,000(0\mathrm{.}01$ million Australian dollar$)$; Maximum deal amount of AUD $100,000(0\mathrm{.}1$ million Australian dollar$)$ per transaction.

BAFI $3192$ Dealing Simulation

Corporation $2$

You are in charge of the treasury department of a major corporation in UK$-$Your company is a major player within the alternative energy industry.

$4,999,816\mathrm{.}00$

The firm will be receiving USD XXX $($Amount in US Dollar, which is the leftover from the practice trading session$)$ from headquarters in New York, USA.

Primary task: $($You should make a trade of cash spots$).$

$$249,990\mathrm{.}8$ USD

$-$You must convert $1/20$ of the number of US dollars to your local currency.

$-$Next, you need to purchase AUD $500,000(0\mathrm{.}5$ million Australian dollar$)$ to pay for raw material purchases from Australia due within $2$ business days.

$-$You also must cover a EUR $100,000(0\mathrm{.}1$ million Euro$)$ equipment purchase from Germany.

Speculation task: $($You should trade with Forex, and you are limited to USD crosses only for the FOREX contracts$)$

$-$You are allowed to form a speculation strategy with different currencies only after you secure the necessary amount for foreign currencies for your primary tasks. $($There will be a $5\%$ penalty applied to your mark if you do not follow the rule$).$

$-$Before the end of the trading session, close your position by converting all of your currency back to US Dollar. $($There will be another $5\%$ penalty applied to your mark if you do not follow the rule$).$

$-$Provide trade notes for each transaction.

$-$Provide at least $3$ speculation trades.

$-$There is no limit for the amount of currency per transaction when converting US dollars to local currency $($for the $1^{st}$ primary task only$).$

$-$There is limit for the amount of currency per transaction when you convert your local currency to foreign currency for $2^{nd}$ and $3^{rd}$ primary task and speculation task:

Minimum deal amount of CNY $100,000(0\mathrm{.}1$ million Chinese yuan$)$; Maximum deal amount of CNY $200,000(0\mathrm{.}2$ million Chinese yuan$)$ per transaction.

Minimum deal amount of GBP $10,000(0\mathrm{.}01$ million Pound sterling$)$; Maximum deal amount of GBP $50,000(0\mathrm{.}05$ million Pound sterling$)$ per transaction.

Minimum deal amount of JPY $5,000,000(5$ million Japanese yen$)$; Maximum deal amount of JPY $20,000,000(20$ million Japanese yen$)$ per transaction.

Minimum deal amount of EUR $10,000(0\mathrm{.}01$ million Euro$)$; Maximum deal amount of EUR

TASK TO DO$!$:

$-$Only focus on Euro currency, no need for other currency

$-$Predicting whether Euro will appreciate or depreciat against USD $($Look out for near future events that would affect exchange rate$)$

$-$Should the corporation exchange from USD to Euro now or hold and exchange in the future for exchange rate benefit?

$-$Finish these task above first, then work on the task on the paper