Question: how to do question 1,2 and3 Question 1 (12 marks) Peter Johnson (a New Zealand student) is planning to travel to Singapore during summer. He
Question 1 (12 marks) Peter Johnson (a New Zealand student) is planning to travel to Singapore during summer. He plans to spend NZD1,250.00 in the trip. However, his bank, NZ Bank does not have direct exchange NZD for SGD. Rather the below information provided by his bank is: Requiredi: State ALL the steps and amounts involved if Peter exchanges NZD1,250,00 for SGD. (12 marks) Question 2 (33 marks) The below is a bank quotes about Swiss frane ("SFr"), Australian dollar ("AS") and Dollar ("S"). Ignoring transaction costs: Required: a. Identify and evaluate if there is any arbitrage exists with brief justification. (8 marks) b. Explain bow to take advantage on the arbitrage. Show ALI. steps and estimate the risk-free profit in dollars and percent if you have $34,250,00. (25 marks) 1 Question 3 (25 marks) DDBank expects that the Singapore dollar ("S\$") will depreciate against the dollar ("S") from its spot rate of $.4312 to $.4205 in 60 days. The following interbank lending and borrowing rates exist: DDBank considers borrowing 4.50 million Singapore dollars in the interbank market and investing the funds in dollars for 60 days. Assume that 360 days in a year. Required: Advise if DDBank pursues this strategy, Show ALL workings to justify. Your answer is expressed in the nearest SS and or \$
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