Calculate Hurtado's USD absolute and percentage gain/loss for the following trade. She sells 200 million AUDJPY...

Transcribed Image Text:

Calculate Hurtado's USD absolute and percentage gain/loss for the following trade. She sells 200 million AUDJPY forward 1 year. She is selling AUD (200 million AUD) and buying JPY (Japanese Yen). Her AUM is 100 million USD. Currently the spot rate bid-ask is 92.28(bid), 92.32(ask) yen per AUD The 1-year bid-ask forward points are -355(bid), -365(ask) In one years' time the spot rates are: AUDJPY= 95.00 JPY per AUD AUDUSD= .754 USD per AUD USDJPY= 120.00 JPY per USD What is Hurtado's gain/loss in USD (absolute and percentage return on AUM) for having sold 200 million AUDJPY forward (sold forward 200 million AUD/bought JPY). Remember your AUM is 100 million USD. Calculate Hurtado's USD absolute and percentage gain/loss for the following trade. She sells 200 million AUDJPY forward 1 year. She is selling AUD (200 million AUD) and buying JPY (Japanese Yen). Her AUM is 100 million USD. Currently the spot rate bid-ask is 92.28(bid), 92.32(ask) yen per AUD The 1-year bid-ask forward points are -355(bid), -365(ask) In one years' time the spot rates are: AUDJPY= 95.00 JPY per AUD AUDUSD= .754 USD per AUD USDJPY= 120.00 JPY per USD What is Hurtado's gain/loss in USD (absolute and percentage return on AUM) for having sold 200 million AUDJPY forward (sold forward 200 million AUD/bought JPY). Remember your AUM is 100 million USD.

Answer rating: 100% (QA)

Calculating Hurtados GainLoss 1 Calculate Forward Rate Choose eit... View the full answer