Q1. The three-month forward rate for the Byzantine solidus (BYZ) against the Venetian ducat (VEN) is quoted as 11.98 – 12.03 VEN/BYZ. The bid-ask spread on the direct quote to a Byzantine investor is closest to: A) 0.0003 BYZ/VEN B) 0.05 VEN/BYZ C) 0.05 BYZ/VEN
Q2. Assume that the USD/GBP six-month forward rate is quoted at a bid of 1.72546 and an ask of 1.72776. What is the spread on the indirect quote for a U.S. dealer? A) 0.000772 GBP/USD. B) 0.000772 USD/GBP. C) 0.002300 USD/GBP.
Q3. Which of the following statements best describes a six month forward foreign currency spread? The six month forward foreign currency spread: A) is the same as the spot spread. B) tends to be smaller than the spot spread. C) tends to be larger than the spot spread.
Q4. An American wants to buy six cases of champagne. Each case costs 390 SEK. If the SEK/USD exchange rate is 6.90, what is the USD cost of the champagne? A) USD339.13. B) USD2,340.00. C) USD56.52.
Q5. In an attempt to reduce her inventory, a dealer holding excess foreign currency should: A) move the midpoint of her direct quote up. B) quote a narrower bid-ask spread. C) move the midpoint of her direct quote down.
Q6. If the liquidity on a foreign currency forward contract decreases, the direct quote: A) and the indirect quote spreads will widen. B) spread will narrow and the indirect quote spread will widen. C) spread will widen and the indirect quote spread will narrow.
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发表于 2009-1-13 11:49
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