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Completed on Friday, 13 August 2021, 11:38 PM
Time taken 5 mins 36 secs
Grade 2.00 out of 22.00 (9%)
Question 1
Correct
Exchange
rates bid
price ask
price
Value of a Malaysian
ringgit (MYR) in Australian dollars (A$) A$0.3008 A$0.3284
Answer: 63284
Answer: 124317
Wesfarmers has
developed the following probability distribution for the spot rate of the Indian rupee (INR) against the
Australian dollar (A$) in six months to buy call options
on INR1.57 million with an exercise price of A$0.3695 and a premium of
A$0.0399.
· A$0.2062 [39 per cent probability]
· A$0.4305 [28 per cent probability]
· A$0.5236 [(100-39-28) per cent
probability]
What is the expected value of the cash to be paid in A$ for the call option hedge? (enter the whole number without sign and
symbol)
Answer:
Answer:
Answer:
Question 6
Not answered
Haier-China
can borrow fund in China with an interest rate of 11.13% to invest 1.73 million Australian
dollars (A$) and expected
return of A$1.96 million next year. Assume that Haier-China
and Biopharma-Australia engages in a parallel loan in which the
Biopharma-Australia gives Haier-China A$1.73 million in exchange
for a loan in Chinese yuan (CNY) at the current exchange
rate CNY3.5995/A$.
These loans will be repaid by both parties at the end of one year. Assume that
next year, Haier-China will
pay Biopharma-Australia 14.38% interest on A$1.73 million
and that the Biopharma-Australia will pay Haier-China 7.35%
interest on the Chinese
yuan loan. Also, Haier-China believes that the A$ will depreciate to
CNY3.2788/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:
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$1.64 million or CNY3.93 million. (enter the whole number
without sign or symbol)
Chinese
yuan A$0.2003 A$0.2281 A$0.2442 A$0.2627
Answer:
Question 8
Not answered
Answer:
Question 10
Not answered
Answer:
Answer:
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