a1! x! ‘ho one nonth raturity date tram Spot date Thwouay sist daneary 200% (a leap Year) WII! thoretore be Thwrsday 29th Rebruary 200 — ie laut tmvkany ny of Febraney. TMs vale in termed the tinl/end! Fale fm 300 + HURKC: Foreign exchange Test ‘Option A: Overowsht GBP 3 nALLON agate EIR ‘Option B: Hone of taeee ‘peien C: OrembouAat USD 3 tiion agatnct ae ‘pion D: OsesbomAt GHP 3 raion agent USD ou selected the CORRECT option - D: Orertousht GIP 3 million against USD rte ia deaiera* jargon tor the GIP/SD exchange vate qantation. GAP iz an indirectly quoted curvency to 9 GIF hase and deniers tend to 1 she their positions 4m terme af the hase currency fheretore in tha case the dealer 42 conetining Ma open pOrition a= avnenewnt 3 OH 199 + TORTC: Forotgn exchange Toxt ‘option A: none of these (peion Bi make 9 Yoon of 10 posats pion C: make a peotat of 1 points Option Dr Soll USD 7 ey OW” ted the CUBE optton FO 140 + TORTC: Foreign exchange Toxt ‘ption Rr the taterTinking nechanien that comects national RIGS payments systens 10 Ih nerber states (Option Bi the npston tora tm Genny for settling Mu salar danestie securities transactions (Option C: the spston word by the Hara Bankers Aesorsatson te clear crane border Bere denarinated aecurition ce Repo (Option Dr the pan-Herape netting syrten ured for seducing credit risk in rerpect of deravetaver traneortiome ted the CORBET opt ton the intoxtinkiny mochantam that comects yational RTS paynente eystens in BY nesber tateOL + TOPTC: Foroign exchange Toxt ‘option 4: 2 aivased by your (QP bad (Option Bs 2 divided by the mad rate of the two may price Option ¢: 2 divaded by your GP Otter Option Dr 4 divided by gour 1.750 he consect option mae Re 2 erie By you GP id cE gow quote Cable 1.75 W0 - 05 the seciorocal rate for a markat wor to purchare USD against GBP is calculated ar 2 divided by 1.7500 (your a ox GBP, LEE of USD) ‘Option C: a6 a thn way ontright price Option D: a6 PE amp Hotats he connect option mae Bs ne PX simp points 1 3 se SST amar seme sen ann a msas am wo a0 | ‘Ootion A simp points ~ eotinatod difference botwwon spol HIR/USD rato naw aud in 6 mowtho (ane ‘Option B: none oF tiewe‘Option Cé mip points = aittevenre 1m interest rates betwen the FM and USD on fhe Gente toed date ‘Option D: camp points = R's USD 6 mathe anterest rate differential sslected the COBECT option - D: sup pointe = FUR v. USD 6 month interest rate differential ‘ption Ar the COrTeME wolataiaty 4m the PX raracts| (Option Bi the ageterentsal betwen the interest tates ta the tom cervenctes ‘pion ¢: the Level af aatenest rates tn the comer carsency nly (Option D: the Level of daterest rater in the bare cuzeeney way lected the CORRECT option - R: the attevential hotwoon tho Anterast rates in tho tw currencies pe smmp peants (Ment OF diacowat) quted 19 the forined nasiat are the kenult of an srstametic calculation based on fhe relative aatevest FO 115 + TORTC: Foreign exchange Toxt chat en fa te te i — IO 116 + TOPTC: Foreign exchange Toxt"OU NGG (NORE OF 1-5720/25 DU SPOT CULE D-H CLER “CIES VOU, WRT BEM. WAS EN OE? Option Option ¢ Optson pe FX market taiks tn torre of the bage Currency - tere GEP Uorefore ow thie quote tho caller Mas gold you GBF ? mi2Lion, 12 TORTE: ovedip exchange Test otion A: az0/aa0 Option 3: 10/300 ‘Option + 105795 ‘peion D: n15/109 selected the COUT optton — He aLU/B0 50 aay svap ~ 100-90, 60 day oxy 168-150, Thore 10 a AAreronco of 6¥ points for the 30 days weaning 2 yoints a day. Por the 55 day swayHO 119 + TORIC: Foreign exchange Toxt ‘pion Ae 420. a3 32 fption Be ase. aT — a2 camct option - Ds 120. 50 — 97 Disect quoted cartency traneaction, if you ate buying Uhe QUOIKD currency {the aon USD custency) ae a nachot wer, you sbriouely want te rat at the chespert fate uhich ie aot altuyr one rite of the closest Uw my price, In thir example you went to reccive the fost HY for ‘ant have Uo deal on the highest rate Of Uhoce quoted on the Left hand side of the market malers" prices (Uhe market raker's Bid for US, i forward exchange torntwlogy, the Cerency with the highor Interost rate can be describe ae Mekny at a forvord DISCOINT ant 1 ents rrvenry 1s the nase currency (ieee the Gt} sh an initeeet currency poir (GHP/ISD}, then the narbers an tke formar sump perats Yall be ea Higp La fm 323 + HUPLC: Foreign exchange Test ‘option a: 80, 28735, ‘Option B: 90, 26731 pein e: 88. 316 aneOption Dr de hinting on he market weer lected the CORRECT option - A: te exbgoct Lo agrecnent hetimen tho parties he movhet meer Lakes reaponsibility of setting the spot rate when dealing in a foreign exchange simp It thie must be agreed to be able (within the cerrent marhet epreai) by the coutterparty HO 123 + TORTC: Foreign exchange Toxt fptien ki se varies eithin a 2% pereent range eather side of St parity Option Bs dt ax aerevoeably fond agenart the Here Qotion ¢: Ht de teeely Hloating Option Dr £0 de a Legacy carsency a defined in the Delores Plan lected the CORRECT option - C18 He freely Coating Ital Uhe WK decider to join ste fellow BU coentrier in HA the Sterling exchange rate renaine freely fleeting agsiaet the Buss OH 124 + TORTC: Foreign exchange Toxt ‘tion A: via the wolatsisty of the eHeeRcY Bate (pion Br vin tae datereat aitterentiar of the tim eutvencies (Option C: Uta the conntor-cersency anterert rate Option Dr ia the hare carteacy saterest ratelel ad the discowst or preniun colcelated in forvard foreign exchange can be calculated fron the differentil betwen the interest rater in the tn) pt 223 + TORTE: Foredip exchange Test GUSH ZSKS EON A UGE IN HE 7 HORS PORRND Ge/O OY QUURE 97/35. OH CUSTOMER DELS RE 95 FODNES. A NE YOU DOE? (Option A: Bownht GBP againet OW spot and rold GF againet GU 3 nosthe forwerd Option B: Bownht GBP against OW spot and rold OW ogainct GBP 3 reste forwerd ‘Option Sole GHP against OF spot ant Downe GBP against OF 3 jonthe formed Option D: Bought AF againat GP'S wonthe ouLetght selected the COUUCT option — A: Ree GRP agatact CN pot and sold GDF against CA 1 nents teamed i thie trangaction the bose curtoncy 6 GBP therefore £¢ tho calling coumtorgarty deals on the Light Nand sido of your quoted 37-35 evap eiday 26th woreh 2006 Monday Sst March 2006 ‘omosday 30th gest 200K Yamsany 278 waren 20 ‘thursday 2208 Horch 200K he standard period foryard valw date wii mommy be tho gino date Jn the agpropriate forward oath. te Spot date 19 attectod Dy yeckente stacy non uriness days tn che or othe or both of the fimsncial cextres mere the cervenciea Wall be aetted, =0 ton See the andar Sar ot apa Se eee a= rm 129 + TORTC: Foreign exchange Text‘Option ke maltsply the GIP/USD Bid by the USD/OH Deter Option B: mltaply the GHP/USD But by the USD/OH But Option ¢: mtaply the GHPASD Offer by the USD/OW Utter ‘Option D: mately the GRPAUSD OFfor By the USD/OAP Bia selected the CORRECT option - B: raNtapIy the GHFAISD Bia ny the WSDL md fo calculate the rate at which you would buy GP ayaiart QW ae racket rater you would multiply the GHR/USD Bid (Left hand side) by the yO Bid (Lett hand ete) ft 228 + TORTE: Foveiup exchange Test ‘Option Ar the fature value of @ currency (Option B: the Cire/ealee ratio of one COrency againet another ‘Option ¢: the Anterost rato aifevontial botwon two CuTOMCl ‘Option D: the arount oe money By whieh you Chango the valu Of @ CURrONCY against hase selected the COUUCT option — Ci fhe snterest vate aisterential betanen ten ewrenctes orvard points quoted by dealers 1a the forelgn exchange market represent the interest rate differential betwen the tup currencies for the cio Anvolved. These pointe aicTerontiale are arrived at arithnetoaly tm 229 + TORTE: Foveiyp exchange Test CISHURER ASKS HOR R MUUCH DH QU /APL 3 MEDS SWAP IMD WI WOME 56-54. DE CUSTOM DEALS AN 54. WHY JOE YOU bom? Totton A: bowoht OW against JPY apet and rold OW afainet 4PL 3 nosthe forwerd Option B: sold Om apatnst PY spot and Dowht OW against JPL 3 jonthe forvard ‘Option ¢: Howht CHF against PY epot and sold JY against OF 3 jonthe formar Option D: cold CO opatnst MY $ monte outetehe selected the COUUCT option — a: Mee CHT agatnct JPY spot and sold OH agninet JPY 1 nents teamed mea tm on keg OF tt ose a cg‘Option a 200/208, pein Be 2/12 (prion: 206/210 Option Dr 205/209 jo muace your porition ar a rachot wer you rust buy onl fell HUR (Sell end buy USD) in the six month, therefore you want to earn at many osnte a you can on the Left hand side of the quoting bank's samp (Uhe 200 Offer of forward EUR). HO 134 + TORTC: Foreign exchange Toxt an replace pair of runey rmziat trenct tone clinineter credit risk with the counterparty selected the CORRECT option - C: elamnates credit risk with tne counterparty‘YOU THE TOLD GT THE FOR PODITS FOR 6 MONK RYU AME QUOTED AT H USD DISCOMT (LONDON TERINLOGH , MOF WD YOU ECE ED 10 HE ‘ption A Rround TAR (Option Bs temuttictent satoenation to deciae the quoted carseacy of @ foreign exchange rate quotation (here the USD) i described ar being at a forward DISCOMT then the miners in the =! Tnutvofter epread are quoted and displayed ‘Low ~ High" ‘Londo texunology) or to pat st another equally corzect may: Ue hare Curren? (ere BIN) av devcrabed ar beang at a Sorward PHBGUM an relation to the quted cerrency (international ternisologF mW 134 TUFTE: orexgn excaange Text ‘tion Kr maltzply ISD/AY Offer by USD/OW Otter Option B: divide USD/IPL Otter by USD/OH Offer Option C2 divide USD/OW Ukter by USD/IPY Bid Option Di atvide USD/IME Bia by USD/OE Offer he connect option mas B: aveade WSD/SPY Had by W/O Otteri formra exchange tormtwology, the Cwrency WIth the Righer interest rate Can he described as heiny at 2 forsmed discount and A ERs rurvenry 1 the ted careeary (the non IRD cwreney) tm a qiaecely moted cwrency pane (heve USD/OH) hen the mereres ta the form sme cinta Wall be wnted Low Hagh', the cewaterewreney (here the haar currency - the US Dollar} can be dazerihed at being at a favvned remem itforang London wud continental terme in semect of the carteacy being 0 deecrabed: HO 136 + TORIC: Foreign exchange Toxt ‘option £1.96 a9 32 Option Be 196 35 — 51 Option C2 1.96 58 — 37 Option Dr 1.96 aT — 32 ted the OUBECT option - C2 7.96 50 — 57 in Direct uted cerrency traneaction, if you are bering the QWHED currency (the non USD currency) ar ¢ narbet wer, gow cbriourly wet to re at at the cheqpert fate uhich ie aot altaye one rite of the closest Uw wey price. In thir example you went to receive te nowt SEK for ‘ant dave Uo dal on tie highast rate Of Uhoee quoted on the Left hand eide of the markst malora" prices (Uke market ruer's BLM fOr US, fer of SE. ft 11: ORTE: oreiyp exchange Test DAY 1 SARE 700 HEAR (MON LEAP EAR) WOW 1S IME ORE MM AATNROTY DANE FUR A RGAE EUR/SD FORTE EKO DEAL DERE a ueotay 2601 March riaay 21th torch Tharoiay Stet Maren03 you can sell USD Qhey GP) at 2.74 03 the best spot offer for GIP (bid for USD) available fm A + TURKC: oroxgH excARNGE Tox ‘option 4: a formed Baraat Option B: parse Option C: nome of these (Option Ds @ forward Prentun Option Ds He WAM tone Uaeds Bar srtected the COUECT option — 0: 3€ WIL nave tome POF ‘Option B: to mitch Lenore with horcowers tn the spot amd forward EX mao ‘Option ¢: to quote ste oun spot and formal FX bias ant oC tersfe vole ot a moace broker 4m the foreign exchange market 16 to match antevbank ayers with seiiers in the mpot and formed FX navtets fm 244 + HUPLC: Foreign exchange Test POT USD/O Is 2.46 70/80 10 USD INTEREST BATES TEE LOWER MOM QW. WOULD YOU EGECT ME PORKNGD POLES TO... ‘Option ¥ ewteacton tron spot ‘Option B: neither ae mor eubtracted (Option C: tamuttictent Satornation te aur aor ase ie vate got 42 40 Tony USD (cents) per HR therefore you want to bey as many USD per FIL as possible (tke Mighest bid for FI - Ene mest OH 146 + TORIC: Foreign exchange Toxt THE FORRIED POTTS FOR MOTH LRU TEE OUOTED 43 — 50, MOS THE FAR BEING OOM? ‘eat cach formed month a wrth sporimately 4 points, tum nonths to arrive at the months price neane that W pesats Ane tobe sae othe near date Bid mu posses oF 23 to aeniewe a price of 1] patats on the Left hand side. H similar ealceation tor the Fight hand de Batons data earine tee a 234 + TOPTC: Forolgn exchange Calculations ‘option be 118. 6 6tu way price the points rast be suwtracted from the spot vate, Left hand side frum left hand side ant right han side Tah 14gM hand #18 tao that USD/T 18 quotod to tw Aocimil places, FoInts aljustnente can Do described ov "Big pointe", rm 233 + aUFTE: roreigm exchange Caieutatons HE PULLOMING RAPES: SHOP GSPASD: 3. 6210/15. 1A GHP/ISD SUMP: -0.5/+0.2. ARE 1S DH MEOWELICHL QUOTE POR GBR/USD UITRIGE VALE (otion A: 4.67482/4.62147 ther tte the Yereese Jogie sgprasch for ante spot calcalattons (add GIF Gtacoeat and subtract GP pret) oF ERIMK shout fhe adjurtnent to te near date vate 10, the tate far tomate ainet spat. FO 236 + TORIC: Foreign exchange Calculatione ‘Option A: 1.62091/1.62152 fpeien Be Ae20990/1. 621502 Option C2 2 c2080/3.c2359 Option Ds acezaen/a.eeat afm 211 + aUFTE: roreigm excnange Calculations "HE QUOTED SHOT EWR/CME? 3.3005, 4 MAIS (260 DAY) HIM: 3.05 9.¢., 6 MIS (240 DRY) CWE: 2.25 2c. CHLCULATE DME BUYOW 6 MONK SHRP ‘ution a: +149 ‘he AC Formula to caleuiate the taramrd avtright rate and then compare the result with the spot to aehiewe the formed potats a above fm 230 + HUPLC: Foreign exchange Calculatione ME PULLOWING RAPES MD USING SHVANGRE LIME DESWULATION: 2 WAIN WSD/CHE SNA 35/33 (20 HRA), 2 RMI USD/CHE SURE: 54/56 ¢20 a. TUSD/O SHRP: £5785 (20 aL) TOOT TS THE OUOTE KOR THE UD/O SAP 1? AH? ‘Option a 30748 tption B: 32790 prion C2 50792 Option De 29707 a soe a a mes POR aN ate, ym pee eae erelel ad 109.18 ~ 162 oF 162 potnta (om 0 Lees 0.33 = 205.67 X 3 nthe ontsight GBPAID 4. Lasn0 £106.00 190.80, therofore mid GBP/SMY gimp porn? Ie: Pores exchange Caleulatsons EUR/USD HOMEY HATES AB QUURED SPOT: 2.9730-95, 3 MINIS EURASD: 445-40. ‘BROKER OT MEE TOE TORMENT POTTS BEMNG USED? Option a: 0-40-1008 ‘ptaon 8 tpeaen © AP WE 5 OMNIS OUT OF TORN 1S QUOTED 45.60-42.4 BE ithe } nots owt oF fonmrrow t= quoted 46.0.4 by the brower the Tanest points being wed are 120-8.50, 103) aapTOPIC: Foreign exchange catcutattone ‘Option baa = 0.266 potato go 15 dape onto 4 nant pinta, 3511499 = 46,5 and S3H11,499 ~ 44.5 (rounded) thorofore 46,5 — 44.5, rm 223 + UTE: Foreign excannge Caieulatsons {2 QUI SPOT USD/SPE 239.40/70 MWD RAKE MINDS FURWAED HODNS 54/53, A WAT HAME WILL OU SELL USO NOE WININS OICAE TO 2 CORPORATE ‘Option a: 219.70 Option B: 119.6947 ‘Option 119-02 {2r11 ISD iM IPE) on the FAGNE hand side of Spot 119.20 lees 32 posnts (USD atacouat ag JPL) = 19.27 fm 224 + HUPLC: Foreign exchange Calculations POT USD/SPY 1S QUOTED £15.00 HP POIME). XP 3 MODIS (88 DNS) USD IOMEREST RATES ARE QUOHED 5.50 P.C. JAD SIGE: YERIOD USD /aPY SUAP IS 158-148 WOT TS THE RPMROTIRTE LL. oe SL MMT WREES. TD POTAT) TH THES PERIOD? ‘Option A 18.79 Boe. (tpeien Be an33 pre prion ce 0a0 pe Option Ds 0325 pejl he approxinately 0.25 poe- (fd point) ic: Toresgn exenange Caleuatsons Option Ae 2.20 67 — 2.20 68 Option B: 4.24 37 - L2L a Option ¢: 1.20 63 — 1.20 72 Option Ds 4.2158 — Lat ae pot PIR: 1.21 00-85, 3 roxthe forward wp porte: 83-37, Lov Hlgh ~ RAM therefore 4.21 33 — Lat 42 fowestam 226 = rurte: roreign exchange Calcutatsone Ip SPOT Uso 1S QUOTED 4.30 00 - 10 RW 6 HONING PULOMD USD/DNK XS WWOTED 50 - 05 WOOK OF ME POLLOWING YOULD HE OUR OUTIL RAE 10 ‘Option RF 6.51.58 Option B: 6.31 35 pein e625 50 prion Dr 629 33 be US/DI samp poants are qunted eigh — Low. TAs stgetttes a OK Preraan (USD Discount) and therefore to calculate the € nent oxtrayat be forward offer of DAK (the hid for forward USD)- " OPTC: Foreign exchange Catcwations‘ption A: Bay ep PR fn Rank Rat 12099 and ond TOR Uo Rawk B MOL apt 6 OnE at 2.79 Mace aM DORR ISD fron BANK Ha 4.08 “potion Bs ey ot HL teen NaN at 1.2030 ak Toad HR to Hank B mat agenat 6 meNENG at 2.95 p.E. ahd Maree USD fon Bane at 2 ‘otion €: Dey epot ER Sen Bank H at 3.2059 and Dorsow EU fron Doth D spot against 6 months at 2.95 pc. ant Lond USD to Dank A a 9. “Option D: Dar spot EMR fen Deak % at 4.2050 and Tend FW to Daak D epot oasinet 6 onthe at 2.75 p.c. en Dorcow US Son Bank 2 at 4.08 fe connect cption mar B: My spot FIM fam Dank 2 at 2.2890 and tend MU to Bank H spot against nenthe at 2.79°p.€. and Rovrow ND fram you Duy spot FIR Cram Bank ¥ at 1.2058 ant Tom the Fontan FIR to Bark B spot agatnet 6 nowthG at 2.75 pic. and BOrOW USD tron Bank A che pics ering the ACF preterved Farsign ewetnnge tormatn the forward outright tate achieved can he catewlated ma 1/2424 (@. 0M poante ‘emtinj inside the rate ot 1.212% sted ta the claeat ‘Option A: USD 7,291,286,91 Option B: USD 1,295,946 your costaney ays CW" 10,000,000 a 1.2118 8 wat cost atm USD 7,293, 96.02. um 229 + HUPIC: Foreign exchange Calculations ‘CUSTER ASES 10 RUC USD AGAINST GSP OUTRIGHT VALUE TODAY. SPOT GERMS 15: 1.60 ‘ption ke 1.99909 peien Be 2600393over. Tt tho short date quite 16 *Kigh Tow" then etantard forward logo apoare to be reversed wth tho right hand pointe valwe of tho sort to twp hetng Ho ated to the Tort han geIiiny rave for DRE against USD. Mero hoth the Ton/isat and Overnight poLAL® rast ho adied Lo the ate (to bring the transaction back to today fron mot) to achieve the Feguired ouLeMMe rate Tor ¥alwe fou. pe owtvagnt iz 01157, The forwaed posnts are sqeted 21-25 therefore the posnts are alded to the spot to ackiewe the oubeagAt quote. The Dan 7 buping BUR zo the dealer weer the Spot bad (for EWM) ant the hud pounte =21, meaning that the Spot rate mt be O-2352 ~ 8-042 ~ 0-716 FO 231 + TOPTC: Foreign exchange calculations ‘ption be 26077 C9 per Fi ‘tien Bs 42002 em per cme Gplion ¢; 4.2802 OF por HR Option Dr 2.6577 EUR por OF econo opt mor Re Te? OW per IR ae ep9 MD PE SHY DARE USD /HPY SRE AE QUUTED ‘pein D: 119.4290, selected the COUT option — a: 118.0125 oe tho Dank’ outright sale oF currency to a custawer on a dato Retore spot (ante sor) to epor rate met he atjusted by the cost of the art aato cover. It the short date quote 22 VHIGh-Low" then stamard forward Logie agpeAre ta be voversed With tho TIgMe hand POUND vaLiO of ie stort ate snp (fon/arst) being he added to the bonk's Uett hand selling vate tor DOK Mgssast IND- dere the Ton/neat amp poants of 179 ‘Sieg to tae Lett nan at the apot vate to achieve the tequaned owvright rate valve tomnrvew (21,0279), M233 + TORIC: Foreign ewhauwe Calculations ‘pion 4126-15, prion Be 39170 Option C2 392-32 Option Dr 292-08 GHr/aPy = 194.10. Uriag the ACL Sore the formed outright rate can be calculated ar 291.09 (391.10 ninar 61 pointe GUIR discount).Option Ds 23611 selected the cORRCT option ISD 19 an indlzect quoted curreicy pale WALIst USD/OH te alrect. To calculate the GHP/CHE rate reyulzod you mst mDLiply out the two ight han ede of the USD rates Option be 43.4-39.6 Option B: 45.5-41.5, Option ¢: $5446 1 you can aad the 1/4 Hid pornts to the Y onthe emp Hid povnts (44.9 pus 1-18) and the TA sup otter potnts to the 3 paz ter pointe (41-0 plas 0-90}, 20 the tw my price #2 45-60-a1.8 OH 236 + MORIC: Foreign exchange Calculations ‘Option a 1.95995 tpeien Be a s6aeTs prion cs a 36009 Option De 2.558895 ou selected the CURECT option - C2 3.56005 ‘om Dey OW value spot at 2.3600 and you can buy and se11 CA (SELL and Bey USD) af (8.00 rm 237 + TOPTC: Foreign exchange CalculationsOw are mrdot mier, if you Rave hoon doalt at 7 pointe Your favoMF oN tho sep YoU Howe Jest qUOLe YOU have gold aml Nowht hase curreney [ctorwara bia) ant wo” you Se1t and buy GBP, buy and goI1 USD ratog Io 1805 an 1.7998.Spot cath nowwnte! CBD 10,4 isn 050,00, 7 230 + HUPLC: Foreign exchange Calculations POT DAR/USD 5 QUOTED 0.9500 AP POIME). XP 3 MODIS (88 DIS) USD IMMEREST RATES ARE QUOHED 5.50 P.C. TAD SIGE: YERIOD EUR/USD SuAP IS 77-29 OT TS THE APPROXDGTE LEH, CF AAR INTEREST RATES (MID TOD) 1H THES PERT? dhe approsinately 430 poe (ead pean) . fm 239 + TORTC: Foreign exchaue Calculations TH MENTS D/O SWAP? CASSIE 7 DR ITH). ‘ptien HF 25/0 prion Br a1/a86 Option ¢: $1783 ce Repo Option Dr au4/as3 sted the OORECT option — Be 111/306‘PUL DERL OS AUST QUURED PELE BOOM INTERAGGHINGL. PLC A 3 MRM OUTRIGHT USD/AY GF 208.25 (MRA SHAS MRI USD). IF DHE 3 USDAAWY SHY XS CURRENTLY QUOTED 20-15 WO 15 DE SEUT RAIE ow WHOL TE OUR Yas HASeD? jo calculate the Tate for GIF/SPE tan USD/LFY (Divect nts) and GHF/USD (EnELEec /eectptecal quate} Yow Mart multiply aut fhe tow Left mand torrma on payo 7 heated Foran HK rate applying the data providod wo can calculate the Toran rato ag 1.215295 fm 243 + aUPLC: Foreign exchange Calculatione ISD 15 QUOTED TO YOU 1.61 20-88, MO HK STEALING OTL YOU RECEIVE IF YOU SELL USD 2 HOLLION? ‘Option a: BP 3,226; ‘Option GBP 3,221 000.00, (pein ¢: GRP 3,399,995. 60 ‘pein Ds GHP 3/299/995.60 M244 + TORIC: Foreign exhae Calculations THE POLLORING RATES MD USING STRAIGHT LIN TTERMATTON: 1 WOT USD/CHE SURF: 26/25 (30 DRYS), 2 MINK USD/CHR SURF: 47/46 (60 ORYS), OTH USD OR SMP: 69768 (90 DAYS), HOT TS THE CUOTE FUR A 7-DAY USD/ORT SAP? (pion ne 10. 1/68-7 prion Be 60.2/59.2 Option C2 67 5/66 5 Option Ds 63.2702.2 4 oa astraight Lino 76 daye 12 68 dapo at 47 - 46 pluo 19 days at 69 minus 47 pointe: 22/5088 ~ 18.1999 Uo 66 minus 46 potato: 22/3 ing 18 days ~ 60.2 - 59.2 pointe rounded to 1 €ec, place. rm 243 + aUFTC: Foreign excnange Caieutatsons 20) QUE YOUR CUSPONER SPOT UBP/USD AS 1.55 50/55 WHR OP IS QUID 3.125 - 2.97 MD YA XS QUOTED 3 ~ 2.75, I ME ASKS FO BUY USD YALE UIE, WRAP RARE SOOULD YOU QUOTE MIX TO aK Ke ‘Option 4.5547 Option B: 1.3508 Option ¢¢ Acs3a205 Opeien De Assan ‘er Sper USD at 1.99 58 and Dey and se11 USD (2011 and buy the nae) Tenflert at 2.7% points your favour therefore the rate te meat even OH 246 + MOPIC: Foreign exchange Calculatione ‘pean (prion Be aye and am Option C2 3.2008 and Lute Option Dr aca6u0 and 13704 A Ne eens mee ceo om a so otuon a: 3505Option B: 1-15005 Option c¢ 1.149925 Opeien De a asaers ou selected the CORRECT option - C2 2.119925 fw are ehort FIR TonMoxt and tho FIR to at a aecount (higher Intorest rate) co your wosttion custe 0.75 pte Lo rolT It forward Into today’s Shee enna =12-309923 (owes) be UD/AMY Lnonthe mip potnta are quoted "RuA-Low!. TAte signifies 8 IPE rrortin (USD Diacowat) therefore to calculate fhe 1 onthe ntvaght tan omy price the poants rast be subtracted from the apot rate, left hand mide fiom left hand ride and right hand side fron Fight ‘ie. Renenber the USD/JPE ae quated to tw decimal placer thereiove JPY pointe are ‘hug points’. iat = 1.24 Yen. FO 249 + TORTC: Forotgn exchange Calculations otion A: 2.2606 Option Bs acatz6 ‘Option 41689 Option Ds Anat ae Conect mption tae ¢: het sega1 pants nagher Otter for the extra I month (12 mont) = 6 extra pounes tay fhe Malt woREN (29 hs thevetore the prace as 16 potnta to be sutoarted tran the Spot ooking the Chicr tov fovimra BIR ofuinat WHO 11709 — 80026 — 1.3688 FO 250 + TOPIC: Foreign exchange Calculations ‘Option Xr 56 pts GaP Preraan, prion Br ise pee (Option C: Se pts GDP Discount Gotum D: Sut rte sted the CURE option - C+ 56 pte GBP Diecount f'nonth ontesght USD/QHY 1.2900 Lees 0.0007 ~ 1.2499 X 1 moathe outright GIP/USD 1.8000 Lene H.0H35 = 1.7965. 41.9989. 2.7965 = 2.2008 Kowtrsnkt GE/QE). Spot GAI/GH: a.a¥0i x 1.2300 = 2.2200, therefore mud GBP/IPY emp poante: 2.2310 - 2.2081 = 56 pte GF Discount (om fl be quoted igh-Low am dealer teers) rm 291 + TURTC: Forexgn exchange Calculations he connect option mar Re MD 3, 364,429.07 ma spot MIDMUSD quote of 4.75 27 - $2 your Customer buye USD 1,000,000 at 0.75 27 and wiTL pay value aot (1,480 0H0 Aivided by the rate of fev3 21) — MD 1,364,815.07. 252 + TOPIC: Foreign exchange Calculations ce Repo AVE BEEN ASKED 10 QUUIE A 5 MPNS FURIUD UITRIG IN MZD/USD. DE SHOT 1S 0.69 44 - 49 RW DE 5 MMIS SURE 4 on Option Re 0.69 8.69 22Option Be O69 wes Te Option C2 068 a O68 6 Option Dr O68 Ta O68 8 te HID/USD 5 vonthe remy pointe are quoted igh - Low'. This rignitics « USD Premien HED Discount) and therefore to calctlate the 5 sonthe tcaght too wey price the poante rast be mubtracted fran the epot rate, Left hand ride trun Left hand wide aud F4ght hawd ride frm ght Option Ar 2.5257 Option B: 5252 Option ¢: Ase42 ‘pein Di 3247 ne forvard say pOIRLY are quate High-Low therefore to caloalate the outright USD/OW suteact tho potas fron the got rate (Lert trom Left agit tram Tagnt}_ ore Se com Duy WSO} nanthe nuteagne at 1.307 (2-021 Lene 23 pests) fm 254 + HUPLC: Foreion exchange Calculations AST MICK YOU MELD ia OPER SPOT IBLE POSITION, LOMG GBP 10 MOLLIOM AY 1.6740. THOS WOREIMG'S TT SHMP IS QUOTED 4.50 — 4.25. mA IS ‘Option a: 1.670125, tptien Bs aan prion ce a esse Option De aeuenas a‘htion Ar 30 pointe protst ‘Option 3: 36 pounts Joss ‘Option ¢: 24 potnte peoeit ‘Option D: 26 posnte Taos oo1a at 1.3910 and Bowpht Nock at 1.3876 ~ 34 points ToBe 2 pointe brokerage ~ 52 potnts Pewtt, 236 + HUPIC: Foreign exchange Calculations PGP USD 1S QUOTED 2-c6t0 HUD PULMI). XP") MNDSS (80 DRS) USD INMESHST RATES ARE QUUHED 2.50 P.C. JAD SIRE MERIOD GBP IMTEHEST BATES F.C. ap RIES) RE 1S NE APPROCDOME LEVEL OF GBRAISD SURP POINTS IM TS MRD? fou selected the CORRECT option - Bs 400 pte GP diecount r7en 8 90 day USD AMterest rate Of 1.90 pc. and sane period GBF antevest rate Of 4,00 pie, Oud rates) the ayBeeniRate Ierel OF GHEY sey ‘iz in pts Gir atacoint (negate)lor the answer but notice that tie quoting sides rust De reversed. Answer = 0.5950-52, The Left haut vate is then the ght dant rate 18 tho ofter oF OF. Option Ds 0.9470 D calculate an onchange rato hetamon a direct quoted currency against Ue USD (USD/OW an an tndkvect quoted eurroncy GERAD tho mike 18 feply the appropriate sintlar sides of the typ rates opuinst USD. IN the exarle TUILIDIY the to 1eFE hand rates together to achieve the rm vate fav the hank te seit Oto the chutoner asiinet COP fm 239 + MUPLC: Foreion exchange Calculations ‘option a: 13689 pein B: 1ae70 prion ¢: 13995 a (tvect quoted currency pate. AINARD 2 an andirect (reciprocal) quited eurency paty. To calculate the vate tor H/C the tom ater rust be multiplied together, Hove the rerult i 1:5205 (OW per HR)‘ption a 178.90 prion Be ama prion C2 816 Option De 843 fis is 4 croee curremy quote Qioth USO/GH and USD/JPY are dirset quoted currency paite). To calculate how you could eelL SPL ant Duy OF ‘he sagt hand side tote Of the USD/IPL divided by the Heit hand wide of USD/OW to calcelate the maclet mere Bud for JPL (Otter of ). Divide the USD/IPY rate by the USD/OH rate to achieve Ue iiteriaad convention quote to a GF hase, here 120.55 divided by 1.4805 UUM ue CnC CUSHWIRPIMCION LOTR A SPOT GBE(PE RANE WP 8.52 - 67. WON MUCK STERLIMG WL TE CUSHDER PAY VALLE SPOT IP 1 (Option Ae GBP 538,307.04‘Option: Bay Spot BAR fean Rank Nat 1.2052 ant elt and Duy PUR of USD with Rank R apot oyatnet 6 Nonthe at 87 potnte. svlected the CORRECT option — #: Huy spot HAM fron Haak A at 4.28% and ae1t and ny PAM ay WSO wath Hak B apot aguinst 6 months at 95 You Duy apot FUR Cram Bank a. 1.2852 ant ge11 and buy FUR ag USD on Bank Re forward offer (quot against 6 wonthe) at 55 poms (ogatnat mp Bou all-in 6 wonthe rato 19 (1.2052 ps 0.0055) 1.2107 263 + AOPIC: Foreign exchange Calculations GP USD 1S QUOTED 2-<6H0 UD PUIME).1P'6 MS (380 DIYS) USD IMOEREST RAIES MAE QUUIED 2.25 2. AMD SAME PERIOD GP LMEBESY RATES (WUTED 4.25 B.C. (MID RATES) WOP IS’ ARENT LVL. oP GRAD SiaP PODS I NOS MILD? ‘otion ke 1198 pte Option B: “isa pte Option C2 118-8 pee ‘htien D: "ish pes fren #180 day USD tntereat rate of 1.75 p-c. an anne peviod GDF anterest cate of 4.2% pic. (mid rates) the approximate Level of GIF SD ‘points tn this period sa 0K pts GIF diacotat thevetave negative OH 264 + TOPTC: Foreign exchange Calculationscote When elling USD 5 million (hove FIR 4,836, 569.50)- rm 263 + UTE: Foreign exchange Caieutatons SHUT USD/OW 1S QUOTED 2-30 QO Su RH THE ? MNT FOREN OWTRIG IS 2.48 30 von the SpOt ant tho forward ovbetgAt rates a etralght-forwrd evbtraction aw ie alT that te regurod to arrive at the forvand ponte wed in tio. qwtation. Th this capo tare the forvard ovbright prior auay fran tho spot price (Lett Jawa wido Tron Toft hand sido ant Fight hand de team FEE hand Side), Be sure to quote the porns a5 Chey Mave heen calculated, 1-0, TAINEAIN Ee “LowAGGN OF "HLA-LaW Tome. 266 + HUPIC: Foreign exchange Calculations [HE QUOTED ‘HE FOLLOWING HATES: SPOT G}/OH 2.0450/51. 9 MINIS GP/OW iAP 295/208. A WOK RIE CN YOU HUE GBP AGAINST OF OMG Option a: 24668 fpeion B: 204239 pein c: 34825, ‘SPOT USD/OH TS QUOTED 10 MIU AS 1.46'06/09. 90 XE USD MLD YOU RECEIVE I eOGMGE FOR OH 5,000,008 IF YOU NEALE om THE ICE? om 3ann0.22 sega‘2-1 GW (hey USD) on the right hand side an ar the ISD/CP spot rate 4x the miner af CIP per ISD — 9 divect quntation the USD ament OH 268 + TOPIC: Forotgn exchange Calculations ‘tion Ar GBP 4,015,900.00 Option Bs BP a/ac8 809.52 Option: GBP 4,436, 5H0.00 ‘Option D: CBP 4,868, 976.77 be coevect option wae Be GIF 1 ou are Duying FIR (SoLlimg GBP) fran tho custonor ox Your gusto of 4.60 50-55, therefore ab 1.6055 (you xead them the right way!) weaning a Stvatent of 1,864,576.77 rm 263 + UTC: Foreign exchange calculations SPAS) 1 MOND (32 DHES} SWAP 1S QUORD 7-5-5-5 IMD ME TAO MIS (63 DALS) 1S QUUIED 35.25-13.25, WF 1S MM 42 DAY MUM DALE SRP Option a: a8.2-8.2 Option B: 8.2-7075 Option c: 12.6-106 Opeien Ds aeseans oth sides} dried by the month ten anys mtaplied by the LL eatya saps Yoqeired (1-15 32°" 11) = 2-66 pants, a OH 210 + TORIC: Foreign exchange Calculations‘option 4: 179.99-69 Opeien Be as.a7ae Option ¢: be.ts-a7 Option Dr 280-0696 TmItiply ovt the tuo highest (LIgMt hand ede) rates for Uh OFCOr Of GBP against TPF (eight hand ete). rm 271 aUFTE: roreugn exchange Caieutatons SHUT USD/aRY 1S QUUIED 10 VIN aS 19.60/20 RD OEE MMS PORGAED POLIS XH QUOTED TO YOU AS 58/53, AF WOO RAME CAM YOU UY USD BEE. ‘otion a 119.70 Option B: 119-17 Option 119.02 Opeien De 119.6807 ond side Of Spot 119.78 Lene 52 points (USD dzcoeat og JPY} — 119.17 ‘Option R 31.99 Option B: 118.61-70rm 273 + TORTC: Foreign exchange Calculations ‘ption Ar GBP 2,368,000.00 Option Bs GBP 2,002,855.62 Option C2 BP 2,000,038. 56 ‘Option Ds GBP 2,061,447.37 OED. SPO BURAISD: 2.2000-05, 4 MIMD EURMUSD: 23-8, 2 HMMS ELRAUSD: 26-22, 3 HONTIS HMR/ISD: 36-52, 6 KIS EAR/ISD: 65-60. ASME 30 ‘Option a: 1.1677 pein B: 11126 pion ¢: amt Option Ds 33668 frvent 2 renthe temp 26-22 ond 3 nonthe 46-22. 18 points higher Hid and Offer for the extea 1 nonth therefore 9 extra potats for the halt D5 day, Cherefore the peice i 51-2? making the Bud for gulraght forward EW aguinct USD 2.2100 > 8.0032 = 2.2663, to oie xt nto ayy oettonfrvent 2 renthe resp 26-22 and 3 nonthe 26-22. 18 points higher Hid and Offer for the extea 1 nonth therefore 5 extra paints for the half D5 day, Cherefore the price i 51-2? making the Bud for gutraght forward EW aguinct USD 2.2100 > 0.0032 = 2.2663, ‘Option ©: 6,410,256.41 Option Dr 6.405,328.25, he eoevece opeon vas Dt 6, 105,529.25 0 the market naer'e Bid for QE/OLKer Of USD (higher rate} 3.5612 you wll receive USD 6, 005,529.23. ome Topic ecores 182 owt of 150 (68.08) Row: topic Rasesment: Weil done, you Gimplay a good wndeeatancing of this topte centage of 61.5%, four Yopae acore: 6? out of 225 (53.68) our Topic Assessment: Guite quit, thowh to score well in the ACT Dealing Certificate exanination you should revise this topic futher a