6.Given the following bid-ask spreads: §
SF/$ bid-ask 1.3096-1.4528 §
DKK/$ bid-ask 2.4365-2.5843 Calculate the SF/DKK bid ask spread. A) 0.50675-0.59627. B) 1.6771-1.9733. C) 3.3844-3.5397. D) 0.53749-0.56216. The correct answer was A) Set up a bid-ask matrix using: SF/$ bid-ask 1.3096-1.4528 DKK/$ bid-ask 2.4365-2.5843 (1.3096 SF/$) / (2.5843 DKK/$) = 0.50675 SF/DKK (1.4528 SF/$) / (2.4365 DKK/$) = 0.59627 SF/DKK 7.The current spot rates for currency exchange are as follows: Thai Baht to $ of 0.02240 THB/$ and Australian Dollar (AUD) to Thai Baht of 23.89923 AUD/THB. What is the $/AUD spot cross exchange rate? A) 0.53534. B) 10.52635. C) 0.00094. D) 1.86796. The correct answer was D) The cross rate between $ and AUD is calculated in the following manner: Step 1: Multiply the two quotes together (THB will cancel out) to obtain AUD/$: 0.02240 THB/$ * 23.89923 AUD/THB = 0.53534 AUD/$. Step 2: Take the reciprocal of this result to obtain $/AUD: 1 / 0.53534 AUD/$ = 1.86796 $/AUD An alternative calculation method is as follows: Step 1: Take the reciprocal of the THB/$ quote: 1 / 0.02240 THB/$ = 44.64286 $/THB Step 2: Divide this result by the AUD/THB quote: 44.64286 $/THB / 23.89923 AUD/THB = 1.86796 $/AUD 8.An analyst observes that the exchange rate for Mexican pesos (MXN) is 8 per U.S. dollar (USD), and the exchange rate for Polish zlotys (PLN) is 6 per U.S. dollar. The MXN/PLN exchange rate is closest to: A) 0.750. B) 14.000. C) 1.333. D) Cannot be determined with the data given. The correct answer was C) The cross rate of MXN/PLN is 8 MXN/USD / 6 PLN/USD = 1.333 MXN/PLN. 9.Given the following quotes for the Canadian dollar (CAD) and the British pound (BP), determine the CAD/BP bid-ask spread. (Note: Carry calculations to at least five decimal places.) CAD/$ Bid Ask 1.59031 - 1.59701 / CAD/$
BP/$ Bid Ask 0.69459 - 0.69686 / BP/$ A) 2.29921 - 2.31631 CAD/BP. B) 2.28957 - 3.28863 CAD/BP. C) 2.28211 - 2.29921 CAD/BP. D) 0.43493 - 0.43819 CAD/BP. The correct answer was C) 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 | CAD/$ | 1.59031 | 1.59701 | BP/$ | 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.) CADBid / BPAsk = 1.59031 CAD/$ / 0.69686 BP/$ = 2.28211 CAD/BPBid CADAsk / BPBid = 1.59701 CAD/$ / 0.69459 BP/$ = 2.29921 CAD/BPAsk 10.A bank in Canada is quoting CAD/USD bid 1.4950 - ask 1.5005, and USD/EUR bid 0.9350 – ask 0.9400. What is exchange rate bid and ask for CAD/EUR? A) CAD/EUR bid 1.5904 - ask 1.6048. B) CAD/EUR bid 1.3978 - ask 1.4105. C) CAD/EUR bid 0.7154 - ask 0.7089. D) CAD/EUR bid 0.6254 - ask 0.6264. The correct answer was B) First invert the USD/EUR quote by 1/.9350 = 1.0695 and 1/.9400 = 1.0638 for a EUR/USD bid-ask spread of 1.0638 – 1.0695 EUR/USD. Then set up a bid-ask matrix. 1.4950/1.0695 = 1.3978 CAD/EUR 1.5005/1.0638 = 1.4105 CAD/EUR The CAD/EUR bid-ask spread is 1.3978 – 1.4105 11.Given the following quotes: 2.00 GBP/USD and 8.00 Pesos/USD, calculate the direct Pesos/GBP spot cross exchange rate. A) 0.625. B) 4.000. C) 1.600. D) 0.250. The correct answer was B) The direct method of quoting currencies is domestic currency / foreign currency or GBP/Pesos. You need to calculate what one peso is worth in pounds, 8 / 2 = 4. 12.Given P the direct quotes in U.S. dollars for the Mexican peso (MXN) and the Peruvian nuevo sol (PEN), determine the MXN/PEN bid-ask cross rates. Select the closest correct answer. USD/MXN Bid/Ask: 0.11001 - 0.11036 USD/PEN Bid/Ask: 0.28818 - 0.28918 A) MXN/PEN 2.62890 - 2.64630 B) MXN/PEN 2.61127 - 2.62867 C) MXN/PEN 0.03042 - 0.03296 D) MXN/PEN 0.38300 - 0.38554 The correct answer was B) 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. 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.) MXNBid / PENAsk = 0.11001 USD/MXN / 0.28918 USD/PEN = 0.38042 PEN/MXN, 1 / 0.38042 PEN/MXN = 2.62867 MXN/PEN MXNAsk / PENBid = 0.11036 USD/MXN / 0.28818 USD/PEN = 0.38296 MXN/PEN, 1 / 0.38296 PEN/MXN = 2.61127 MXN/PEN Step 3: Quote : The MXN/PEN Bid-Ask is: (Note: The lower number from Step 2 is the bid, the higher number is the ask.) MXN/PEN 2.61127 to 2.62867 | 
发表于 2008-5-12 12:09
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