Professional Documents
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Completed on Saturday, 14 August 2021, 2:00 AM
Time taken 41 mins 54 secs
Grade 18.00 out of 22.00 (82%)
Question 1
Correct
Answer: 24000
Answer: 400
Question 3
Correct
Answer: 36466
Exchange
rates bid
price ask
price
Value of a Malaysian
ringgit (MYR) in Australian dollars (A$) A$0.3067 A$0.3206
Answer: 126728
Question 5
Correct
Haier-China
can borrow fund in China with an interest rate of 11.21% to invest 1.66 million Australian
dollars (A$) and expected
return of A$1.93 million next year. Assume that Haier-China
and Biopharma-Australia engages in a parallel loan in which the
Biopharma-Australia gives Haier-China A$1.66 million in exchange
for a loan in Chinese yuan (CNY) at the current exchange
rate CNY3.5884/A$.
These loans will be repaid by both parties at the end of one year. Assume that
next year, Haier-China will
pay Biopharma-Australia 14.28% interest on A$1.66 million
and that the Biopharma-Australia will pay Haier-China 7.28%
interest on the Chinese
yuan loan. Also, Haier-China believes that the A$ will depreciate to
CNY3.2026/A$ next year. How much
the Haier-China will make a profit or loss in CNY from
this parallel loan agreement in one year. (enter the whole number with
no
sign or symbol)
Answer: 125568
Question 7
Correct
Answer: 65477
Answer: 41895
Wesfarmers has
developed the following probability distribution for the spot rate of the Indian rupee (INR) against the
Australian dollar (A$) in six months to buy call options
on INR1.11 million with an exercise price of A$0.3050 and a premium of
A$0.0340.
Answer: 3641569
Question 10
Correct
Answer: 144227
You
have the following quotations on the Chinese yuan (CNY) against the Australian
dollar (A$) at the HSBC Bank in China and
National Australia Bank in Australia.
Can you make a locational arbitrage profit? If yes, calculate the arbitrage
profit if you have
A$1.62 million or CNY3.69 million. (enter the whole number
without sign or symbol)
Chinese
yuan A$0.2033 A$0.2237 A$0.2431 A$0.2670
Answer: 140492
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