Reading 18: Currency Exchange Rates-LOS c 习题精选

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

2^#

发表于 2011-3-6 11:40 | 只看该作者

Given P the direct quotes in U.S. dollars for the Mexican peso (MXN) and the Peruvian nuevo sol (PEN), determine the PEN:MXN bid-ask cross rates. Select the closest correct answer.

MXN:USD Bid/Ask: 0.11001 - 0.11036

PEN:USD Bid/Ask: 0.28818 - 0.28918

A)	PEN:MXN 2.62890 - 2.64630.

B)	PEN:MXN 2.61127 - 2.62867.

C)	PEN:MXN 0.38300 - 0.38554.

This problem demonstrates the "Bid-Ask Matrix Method" to calculate the bid and ask quotes:

Step 1: Put the bid-ask quotes into a matrix. Use direct quotes in the common currency.

Currency

Bid

Ask

MXN

0.11001

0.11036

PEN

0.28818

0.28918

Step 2: "Divide Out" the diagonals and take the reciprocal. Remember that the quotes are direct quotes for a USD investor.

(Remember to put MXN in the numerator - because MXN is in the numerator of the quote we are asked to calculate.)

MXN_Bid / PEN_Ask = 0.11001 / 0.28918 = MXNEN 0.38042,

1 / MXNEN 0.38042 = PEN:MXN 2.62867

MXN_Ask / PEN_Bid = 0.11036 / 0.28818 = PEN:MXN 0.38296,

1 / MXNEN 0.38296 = PEN:MXN 2.61127

Step 3: Quote : The PEN:MXN Bid-Ask is:

(Note: The lower number from Step 2 is the bid, the higher number is the ask.)

PEN:MXN 2.61127 to 2.62867

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

3^#

发表于 2011-3-6 11:40 | 只看该作者

Given the following quotes, USD:GBP 2.0000 and USD:MXN 8.0000, calculate the direct GBP:MXN spot cross exchange rate.

0.6250.

4.0000.

0.2500.

If we had 1 GBP we could buy 0.50 USD. That 0.50 USD would buy 4 Pesos. Alternately, you can invert the first quote to read GBP:USD 0.5000. Then, 0.5000_GBP:USD x 8.0000_USD:MXN = 4.0000_GBP:MXN

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

4^#

发表于 2011-3-6 11:42 | 只看该作者

A bank in Canada is quoting USD:CAD bid 1.4950 ? ask 1.5005, and EUR:USD bid 0.9350 ? ask 0.9400. What is exchange rate bid and ask for EUR:CAD?

A)	EUR:CAD 1.5904 ? 1.6048.

B)	EUR:CAD 0.6254 ? 0.6264.

C)	EUR:CAD 1.3978 ? 1.4105.

First invert the EUR:USD quote by 1 / 0.9350 = 1.0695 and 1 / 0.9400 = 1.0638 for a quote of USD:EUR 1.0638 ? 1.069. Then set up a bid-ask matrix.

1.4950 / 1.0695 = EUR:CAD 1.3978

1.5005 / 1.0638 = EUR:CAD 1.4105

The EUR:CAD bid-ask quote is 1.3978 ? 1.4105

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

5^#

发表于 2011-3-6 11:42 | 只看该作者

Given the following quotes for the Canadian dollar (CAD) and the British pound (GBP), determine the GBP:CAD bid-ask spread. (Note: Carry calculations to at least five decimal places)

USD:CAD 1.59031 ? 1.59701
USD:GBP 0.69459 ? 0.69686

A)	GBP:CAD 2.29921 ? 2.31631.

B)	GBP:CAD 2.28211 ? 2.29921.

C)	GBP:CAD 2.28957 ? 3.28863.

We recommend using the following "Bid-Ask Matrix Method" to calculate the bid and ask quotes:

Step 1: Put the bid-ask quotes into a matrix as below:

Currency

Bid

Ask

USD:CAD

1.59031

1.59701

USD:GBP

0.69459

0.69686

Step 2: “Divide Out” the diagonals.(Remember to put CAD in the numerator - because CAD is in the numerator of the quote we are asked to calculate.)

CAD_Bid / GBP_Ask = 1.59031 / 0.69686 = GBP:CAD 2.28211

CAD_Ask / GBP_Bid = 1.59701 / 0.69459 = GBP:CAD 2.29921

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

6^#

发表于 2011-3-6 11:43 | 只看该作者

An analyst observes that the exchange rate for Mexican pesos is USD:MXN 8.0000, and the exchange rate for Polish zlotys is USDLN 6.0000. The PLN:MXN exchange rate is closest to:

0.7500.

1.3333.

14.0000.

The cross rate of PLN:MXN is (USD:MXN 8) / (USDLN 6) = 1.3333 PLN:MXN.

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

7^#

发表于 2011-3-6 11:43 | 只看该作者

The current spot rates for currency exchange are as follows: USD:THB 0.02240 and THB:AUD 23.89923. What is the AUD:USD spot cross exchange rate?

0.00094.

1.86796.

0.53534.

The AUD:USD cross rate is calculated in the following manner:

Step 1: Multiply the two quotes together (THB will cancel out) to obtain USD:AUD as follows: USD:THB 0.02240 × THB:AUD 23.89923 = USD:AUD 0.53534.

Step 2: Take the reciprocal of this result to obtain AUD:USD as follows: 1 / USD:AUD 0.53534 = AUD:USD 1.86796

An alternative calculation method is as follows:

Step 1: Take the reciprocal of the USD:THB quote as: 1 / USD:THB 0.02240 = THB:USD 44.64286

Step 2: Divide this result by the THB:AUD quote as: THB:USD 44.64286 / THB:AUD 23.89923 = AUD:USD 1.86796

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

8^#

发表于 2011-3-6 11:44 | 只看该作者

Given the following bid-ask spreads, calculate the DKK:CHF bid ask spread:

USD:CHF bid-ask 1.3096 ? 1.4528
USDKK bid-ask 2.4365 ? 2.5843

A)	1.6771 ? 1.9733.

B)	0.53749 ? 0.56216.

C)	0.50675 ? 0.59627.

Set up a bid-ask matrix using:

USD:CHF bid-ask 1.3096 ? 1.4528

USDKK bid-ask 2.4365 ? 2.5843

(USD:CHF 1.3096) / (USDKK 2.5843) = DKK:CHF 0.50675

(USD:CHF 1.4528) / (USDKK 2.4365) = DKK:CHF 0.59627

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

9^#

发表于 2011-3-6 11:44 | 只看该作者

If the CAD is trading at CAD:USD 0.6403 and the GBP is trading GBP:CAD 2.5207, the GBP:USD exchange rate is:

A)	GBP:USD 1.6140.

B)	GBP:USD 0.6196.

C)	GBP:USD 3.9367.

(CAD:USD 0.643) × (GBP:CAD 2.5207) = GBP:USD 1.6140.

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

10^#

发表于 2011-3-6 11:44 | 只看该作者

If the spot exchange rate between the British pound and the U.S. dollar is USD:GBP 0.7775, and the spot exchange rate between the Canadian dollar and the British pound is GBP:CAD 1.8325, what is the CAD:USA spot cross exchange rate?

0.70186.

1.42477.

0.42428.

First, convert USD:GBP 0.7775 to 1/0.7775 = GBP:USD 1.28617.

Then, divide GBP:USD 1.28617 by GBP:CAD 1.8325 = CAD:USD 0.70187.