You received a MYR20 million deposit from a customer for 183 days at 7 25 p a Assume that you decide to place out the funds to the inter bank market at 7 5 p a Identify the strategy used in this transaction compute the lock in profit loss what is the opportunity cost of covering this position ...

The strategy used in this transaction is called interbank lending or placement in the interbank mark ...

You received a MYR20 million deposit from a customer for 183 days at 7.25% p.a. Assume that

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You received a MYR20 million deposit from a customer for 183 days at 7.25% p.a. Assume that you decide to place out the funds to the inter-bank market at 7.5% p.a.

Identify the strategy used in this transaction.
compute the lock-in profit/ loss.
what is the opportunity cost of covering this position?

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Economics

ISBN: ?978-0073511290

19th edition

Authors: Paul A. Samuelson, William Nordhaus

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Posted Date: May 15, 2024 11:43 PM

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You received a MYR20 million deposit from a customer for 183 days at 7.25% p.a. Assume that

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The strategy used in this transaction is called interbank lending or placement in the interbank mark... View the full answer

Economics

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