标题: Reading 18: Currency Exchange Rates-LOS c习题精选 [打印本页]
作者: 土豆妮 时间: 2010-4-13 15:38 标题: [2010]Session 4-Reading 18: Currency Exchange Rates-LOS c习题精选
Session 4: Economics: Economics for Valuation
Reading 18: Currency Exchange Rates
LOS c: Calculate and interpret currency cross rates, given two spot exchange quotations involving three currencies.
Given an exchange rate of 0.9250 USD/CAD and 1.6250 USD/SF what is exchange rate quoted in CAD/SF?
作者: 土豆妮 时间: 2010-4-13 15:39
Given an exchange rate of 0.9250 USD/CAD and 1.6250 USD/SF what is exchange rate quoted in CAD/SF?
(1.6250 USD/SF) / (0.9250 USD/CAD) = 1.7568 CAD/SF
作者: 土豆妮 时间: 2010-4-13 15:39
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 0.38300 - 0.38554 | |
|
C) |
MXN/PEN 2.61127 - 2.62867 | |
作者: 土豆妮 时间: 2010-4-13 15:39
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 0.38300 - 0.38554 | |
|
C) |
MXN/PEN 2.61127 - 2.62867 | |
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
作者: 土豆妮 时间: 2010-4-13 15:39
Given the following quotes: 2.00 GBP/USD and 8.00 Pesos/USD, calculate the direct Pesos/GBP spot cross exchange rate.
作者: 土豆妮 时间: 2010-4-13 15:40
Given the following quotes: 2.00 GBP/USD and 8.00 Pesos/USD, calculate the direct Pesos/GBP spot cross exchange rate.
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.
作者: 土豆妮 时间: 2010-4-13 15:40
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 1.3978 ? ask 1.4105. | |
|
B) |
CAD/EUR bid 1.5904 ? ask 1.6048. | |
|
C) |
CAD/EUR bid 0.6254 ? ask 0.6264. | |
作者: 土豆妮 时间: 2010-4-13 15:40
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 1.3978 ? ask 1.4105. | |
|
B) |
CAD/EUR bid 1.5904 ? ask 1.6048. | |
|
C) |
CAD/EUR bid 0.6254 ? ask 0.6264. | |
First invert the USD/EUR quote by 1 / 0.9350 = 1.0695 and 1 / 0.9400 = 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
作者: 土豆妮 时间: 2010-4-13 15:40
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) |
2.28211 ? 2.29921 CAD/BP. | |
|
B) |
2.29921 ? 2.31631 CAD/BP. | |
|
C) |
2.28957 ? 3.28863 CAD/BP. | |
作者: 土豆妮 时间: 2010-4-13 15:40
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) |
2.28211 ? 2.29921 CAD/BP. | |
|
B) |
2.29921 ? 2.31631 CAD/BP. | |
|
C) |
2.28957 ? 3.28863 CAD/BP. | |
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
作者: 土豆妮 时间: 2010-4-13 15:41
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:
作者: 土豆妮 时间: 2010-4-13 15:41
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:
The cross rate of MXN/PLN is 8 MXN/USD / 6 PLN/USD = 1.333 MXN/PLN.
作者: 土豆妮 时间: 2010-4-13 15:41
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?
作者: 土豆妮 时间: 2010-4-13 15:41
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?
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 $/AUD
作者: 土豆妮 时间: 2010-4-13 15:43
Given the following bid-ask spreads, calculate the SF/DKK bid ask spread:
- SF/$ bid-ask 1.3096 ? 1.4528
- DKK/$ bid-ask 2.4365 ? 2.5843
作者: 土豆妮 时间: 2010-4-13 15:44
Given the following bid-ask spreads, calculate the SF/DKK bid ask spread:
- SF/$ bid-ask 1.3096 ? 1.4528
- DKK/$ bid-ask 2.4365 ? 2.5843
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
作者: 土豆妮 时间: 2010-4-13 15:44
If the CAD is trading at 0.6403 USD/CAD and the GBP is trading 2.5207 CAD/GBP, the USD/GBP exchange rate is:
作者: 土豆妮 时间: 2010-4-13 15:44
If the CAD is trading at 0.6403 USD/CAD and the GBP is trading 2.5207 CAD/GBP, the USD/GBP exchange rate is:
(0.643USD/CAD) × (2.5207CAD/GBP) = 1.6140 USD/GBP.
作者: 土豆妮 时间: 2010-4-13 15:44
If the spot exchange rate between the British pound and the U.S. dollar is 0.7775 ?/$, and the spot exchange rate between the Canadian dollar and the British pound is 1.8325 CAD/?, what is the U.S. dollar/Canadian dollar spot cross exchange rate?
作者: 土豆妮 时间: 2010-4-13 15:44
If the spot exchange rate between the British pound and the U.S. dollar is 0.7775 ?/$, and the spot exchange rate between the Canadian dollar and the British pound is 1.8325 CAD/?, what is the U.S. dollar/Canadian dollar spot cross exchange rate?
First, convert 0.7775 ?/$ to 1/0.7775 = 1.28617 $/?.
Then, divide 1.28617 $/? by 1.8325 CAD/? = 0.70187 $/CAD.
作者: 土豆妮 时间: 2010-4-13 15:45
The Japanese yen is trading at 115.2200 ￥/$ and the Danish krone (DKK) is trading at 16.4989 ￥/DKK. The $/DKK exchange rate is:
作者: 土豆妮 时间: 2010-4-13 15:45
The Japanese yen is trading at 115.2200 ￥/$ and the Danish krone (DKK) is trading at 16.4989 ￥/DKK. The $/DKK exchange rate is:
The cross rate between $ and DKK is calculated in the following manner:
$/￥ × ￥/DKK = (1 / 115.2200) × 16.4989 = 0.1432 $/DKK (the Yen cancels out)
作者: 土豆妮 时间: 2010-4-13 15:45
A Mexican dealer gives a quote of 8.00 bid / 8.10 ask (MXN/USD) and a London dealer quotes the U.S. dollar at 2.00 bid / 2.1 ask (GBP/USD). What is the MXN/GBP bid and ask from the perspective of a Mexican dealer?
作者: 土豆妮 时间: 2010-4-13 15:45
A Mexican dealer gives a quote of 8.00 bid / 8.10 ask (MXN/USD) and a London dealer quotes the U.S. dollar at 2.00 bid / 2.1 ask (GBP/USD). What is the MXN/GBP bid and ask from the perspective of a Mexican dealer?
This result is determined as follows:
Step 1: Invert GBP quote.
First, we need to invert the GBP quotes to make the currency units USD/GBP. Then, when we multiply by the MXN/USD quote we will have the correct MXN/GBP units. (Remember that when you take the reciprocal of a quote, the bid becomes the ask and vice versa. So, for the bid we take the given ask)
Bid: 1.00000 / 2.10000GBP/USD = 0.47619USD/GBP
Ask: 1.00000 / 2.00000GBP/USD = 0.50000USD/GBP
Step 2: Calculate MXN/GBP bid-ask Prices.
Bid: 8.00000MXN/USD × 0.47619USD/GBP = 3.80952MXN/GBP, or 3.81MXN/GBP.
Ask: 8.10000MXN/USD × 0.50000USD/GBP = 4.05000MXN/GBP, or 4.05MXN/GBP.
Thus, the MXN/GBP bid-ask is: 3.81MXN/GBP - 4.05MXN/GBP.
作者: luqian55 时间: 2010-5-31 00:30
thanks
作者: annyyu 时间: 2011-1-7 02:59
re
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