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$5.00 Question 5

Asked by :
jeck2
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Q:
  1. Assume the following quotations for the USD and AUD.

 

Current spot

1.6150/58 AUD/USD

30-day forward

15/25

60-day forward

25/30

90-day forward

35/25

180-day forward

40/35

a)     Is the AUD at a 180-day forward discount or premium?  Calculate by using the ask quotes.

b)    If you get into 30-day AUD forward and out of 90-day AUD forward in the amount of AUD100 million, how much profit/loss will you have? Calculate.

 

 

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INTERNATIONAL FINANCE : AUD/USD RELATED PROBLEM : 100% CORRECT.
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  • Posted on May. 22, 2012 at 07:29:04AM
Posted by :
pavan101
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A:
Preview: ... nts (58-35=23) per USD.   b. 30 day forward rate = 15/25   YOU GET IN i.e. you buy AUD. 90-day forward rate = 35/25  YOU GET OUT I.E. you sell AUD. You buy AUD at1.6115 AUD/USD  ...
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