Question $2$

Given the quotes below, determine the MYR$/$NZD currency against currency bid$-$ask quotations.

American Terms

$\backslash$table$[[$Currency$,$Bid,Ask$],[$Malaysian Ringgit,$0\mathrm{.}21086,0\mathrm{.}21209],[$New Zealand,$0\mathrm{.}60543,0\mathrm{.}60654]]$

Question $3$

See the quotes below and answer the following questions:

a$.$ The current exchange rate of the New Zealand dollar in European terms is NZD$1\mathrm{.}6487/$ USD. What is the mid rate for the $9-$month forward on the NZD in European terms? What is the $9-$month mid forward exchange rate in American terms?

b$.$ Calculate the annualized forward premium$/$ discount for the NZD$.$ Is the NZD trading at a premium or a discount versus the US dollar for delivery in $9$ months? For simplicity, assume $30$ days in each month.

c$.$ Currently the $9-$month forward exchange rate for the Canadian dollar is USD $0\mathrm{.}74345/$ CAD. Use your answer in part a$.$ and determine the forward cross$-$exchange rate between the Canadian dollar and the NZD$.$ Show the forward cross$-$rates in "Candain" terms $($CAD$/$NZD$).$

U$.$S$.$ Dollar$/$New Zealand Dollar $(^$USDNZD$)$

$1\mathrm{.}64871\mathrm{.}6490$

FORWARD RATES for Fri, Feb $2$nd$,2024$

$\backslash$table$[[$Name$,$Bid,Ask,Mid Price$],[$USD$/$NZD Overnight Forward,$-1\mathrm{.}2100,-0\mathrm{.}8100,-1\mathrm{.}0100],[$USD$/$NZD $6-$Month Forward,$-24\mathrm{.}0700,-22\mathrm{.}2700,-23\mathrm{.}1700],[$USD$/$NZD $7-$Month Forward,$-28\mathrm{.}1900,-26\mathrm{.}1900,-27\mathrm{.}1900],[$USD$/$NZD $8-$Month Forward,$-32\mathrm{.}1000,-29\mathrm{.}9000,-31\mathrm{.}0000],[$USD$/$NZD $9-$Month Forward,$-35\mathrm{.}7900,-33\mathrm{.}2900,-34\mathrm{.}5400],[$USD$/$NZD $10-$Month Forward,$-40\mathrm{.}5700,-37\mathrm{.}5700,-39\mathrm{.}0700],[$USD$/$NZD $11-$Month Forward,$-44\mathrm{.}4000,-40\mathrm{.}9000,-42\mathrm{.}6500],[$USD$/$NZD $1-$Year Forward,$-48\mathrm{.}8100,-44\mathrm{.}8100,-46\mathrm{.}8100],[$USD$/$NZD $2-$Year Forward,$-121\mathrm{.}2900,-101\mathrm{.}2900,-111\mathrm{.}2900]]$

Question $4$

A currency trader receives the following quotes for spot exchange change rates in American terms.

$$0\mathrm{.}7449/$ Singapore Dollar

$$\frac{1\mathrm{.}0789}{?}$ Euro

Euro $0\mathrm{.}6735/$Singapore Dollar

Is there any arbitrage opportunity? For simplicity, ignore the bid$-$ask spread.

Assume the trader has $$10,000,000$ to start with, what is the total arbitrage profit denominated in the US dollar and show the transaction details?