Exchange rate is the price of one currency expressed in terms of another currency and it...

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Exchange rate is the price of one currency expressed in terms of another currency and it is determined by the supply and demand of each country's currency. Currencies can be traded in the spot or forward market. In most currency markets, many currency pairs are inactively traded and so their exchange rate can be determined through their relation relative to a widely traded third currency. a) The following information is provided by Spectrum Nova Advisors. There are several different exchange rate circumstances for currency transaction. Currency Exchange Rates Value of Malaysian Maturity Ringgit (RM) in Australian Dollar (AUD) Spot 30-day 60-day Bid 0.4000 20/10 15/25 Ask 0.5000 Three-Month Interest Rates (Percent) Malaysia 3.0 Value of Jordanian Dinar (JOD) in Malaysian Ringgit (RM) Bid 4.2000 Australia 3.5 10/20 25/15 Ask 4.3000 Jordan 2.5 You are required to show your workings based on the given information of the currency exchange rates. (9 marks) You are required to show your workings based on the given information of the currency exchange rates. (9 marks) i) Calculate the outright rates of RM per AUD at 30 days. ii) Compute 2-month forward bid outright RM per JOD. iii) Compute the percentage spread on the spot AUD per JOD quotation. iv) Determine bid and ask rates of AUD per JOD in 90 days. v) Calculate 3-month annualized premium (discount) of AUD in JOD. Exchange rate is the price of one currency expressed in terms of another currency and it is determined by the supply and demand of each country's currency. Currencies can be traded in the spot or forward market. In most currency markets, many currency pairs are inactively traded and so their exchange rate can be determined through their relation relative to a widely traded third currency. a) The following information is provided by Spectrum Nova Advisors. There are several different exchange rate circumstances for currency transaction. Currency Exchange Rates Value of Malaysian Maturity Ringgit (RM) in Australian Dollar (AUD) Spot 30-day 60-day Bid 0.4000 20/10 15/25 Ask 0.5000 Three-Month Interest Rates (Percent) Malaysia 3.0 Value of Jordanian Dinar (JOD) in Malaysian Ringgit (RM) Bid 4.2000 Australia 3.5 10/20 25/15 Ask 4.3000 Jordan 2.5 You are required to show your workings based on the given information of the currency exchange rates. (9 marks) You are required to show your workings based on the given information of the currency exchange rates. (9 marks) i) Calculate the outright rates of RM per AUD at 30 days. ii) Compute 2-month forward bid outright RM per JOD. iii) Compute the percentage spread on the spot AUD per JOD quotation. iv) Determine bid and ask rates of AUD per JOD in 90 days. v) Calculate 3-month annualized premium (discount) of AUD in JOD.