Question: please solve and show all work. do not copy same answes from other chegg problems please. make sure to read it carfully. thank you Questions

please solve and show all work. do not copy same answes from other chegg problems please. make sure to read it carfully. thank you
please solve and show all work. do not copy same answes from

Questions 1-6. Given the following quotes for the pound, direct in London, England, for the Canadian dollar, answer the following. (When calculating indirect quotes, round to 4 decimal places). Bid Ask Spot .5865 .5871 90 day forward .5872 .5880 180 day forward 5882 .5891 1. (2 points) The indirect outright 180 day bid quote in London is: 2. (4 points) On a points basis, the 1 year direct forward rates are 25/32. Given this information what are the 1 year direct outright bid and ask quotes? 3. (2 points) The Canadian dollar is at a forward relative to the pound. a. discount b. premium 4. (5 points) On a direct annual basis, the percentage premium or discount on the CS vs. the pound for the 180 day ask quote is about: 5. (6 points) On an indirect annual basis, the percentage premium or discount on the CS vs the pound for the 90 day bid quote is about: 6. (6 points) What are the indirect 90 day bid and ask quotes in points? 7. (2 points) If the spot rate changed from $1.1397/ to $1.1290/, the value of the dollar a. appreciated relative to the euro b. depreciated relative to the euro

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!