Question3 (8marks) SupposeyouareaFXtraderatHSBC.AclientcallsforaGBPquote.Youquote1.3625/1.3648.Clientbuys GBP200,000. (2marks)Atwhatrateisthedealdone? (2mark)Whatisyourposition(longorshort)inGBP(howmuch)? (2mark)Whatisyourposition(longorshort) inUSD(howmuch)? (2marks)Suppose30minutes after theclient'sdealwasdone,theGBPexchangeratesurged350pips.Whatistheprofitor loss status(andhowmuch)ofyourposition? Question4 (8marks) ContinuefromQuestion3above. Supposeattheendofthedayyoufindanotherbankquotingthe
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Question3(8marks)
SupposeyouareaFXtraderatHSBC.AclientcallsforaGBPquote.Youquote1.3625/1.3648.Clientbuys GBP200,000.
- (2marks)Atwhatrateisthedealdone?
- (2mark)Whatisyourposition(longorshort)inGBP(howmuch)?
- (2mark)Whatisyourposition(longorshort) inUSD(howmuch)?
- (2marks)Suppose30minutes after theclient'sdealwasdone,theGBPexchangeratesurged350pips.Whatistheprofitor loss status(andhowmuch)ofyourposition?
Question4(8marks)
ContinuefromQuestion3above. Supposeattheendofthedayyoufindanotherbankquotingthe GBP/USDat1.3760/1.3765.
- (2marks)IstheGBPhigher/lower,stronger/weakeragainst USD?
- (2marks) Whattrade(buyor sellwhat)wouldyoudotocloseyouropenposition?
- (4marks)Whatis yourprofit/loss intermsofGBPandintermsofUSD?
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