The following information is given: Spot rate RM/S$ Spot rate RM/ One month forward RM/S$ 10/90...

 

Transcribed Image Text:

The following information is given: Spot rate RM/S$ Spot rate RM/€ One month forward RM/S$ 10/90 One month forward RM/€ : 20/85 :RM2.4565/4633 :RM5.0323/0400 Three months interest in Malaysia is 5.5%, in Singapore is 4.0% and in Italy is 3.5%. i) If you have RM570,250 today, determine how much S$ would you exchange with. (2 marks) ii) If you have €420,000 today, ascertain how much ringgit would you exchange with. (2 marks) iii) Determine how many ringgit would you receive with $$300,000 for delivery in one month's time. (2 marks) iv) Determine how many € would you receive with RM650,500 for delivery in three month's time. (2 marks) The following information is given: Spot rate RM/S$ Spot rate RM/€ One month forward RM/S$ 10/90 One month forward RM/€ : 20/85 :RM2.4565/4633 :RM5.0323/0400 Three months interest in Malaysia is 5.5%, in Singapore is 4.0% and in Italy is 3.5%. i) If you have RM570,250 today, determine how much S$ would you exchange with. (2 marks) ii) If you have €420,000 today, ascertain how much ringgit would you exchange with. (2 marks) iii) Determine how many ringgit would you receive with $$300,000 for delivery in one month's time. (2 marks) iv) Determine how many € would you receive with RM650,500 for delivery in three month's time. (2 marks)

Answer rating: 100% (QA)

Solution Given Spot rate RMS RM 245654633 RM RM 503230400 One month forward RMS 1090 One month forwa... View the full answer