OPTIONS PHILADELPHIA EXCHANGE Calls Puts Vol. Last Vol. Last 50,000 Canadian Dollars-cents per unit. 72 Sep 2 1.05 722 Jul 60 0.13 72½ Sep 73 Jul 50 0.08 73 Sep 73 Sep 75% Sep 18228 1.45 1.75 2.26 3.95 76½ Sep 4.88 In the above quotes on currency options contracts for Canadian Dollars (CAD), each contract has 50,000 CADs. For the buyer of one CAD 76% Sep Put contract, calculate the profit or loss on the expiration date, when the spot price for CD is $0.72 $2,250 -$2,440 -$190 -$2,250
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- Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each contract has 62.500 CHFs. Exercise prices, call and put premiums are in cents. Calls Vol. Last 62,500 Swiss Francs-European 10 2.78 77 Oct 31 3.60 14 2.66 1.59 2.04 $ 1.00 1.39 77 Dec 78 Nov O $40 O $400 O $250 O $25 78 79 79 Dec Oct Nov 82 83 83 10 645 10 47 6 Puts Vol. Last Style. 0.59 0.99 0.33 47 100 50 79 Dec 80 Nov 80 Dec 81 Oct 81 Nov 81 Dec Nov Nov 0.20 Dec 0.40 The cost of buying one CHF call options contract with an exercise price of $0.83 which expires on the 3rd Wednesday of December is: 10 10 118211153 15 0.23 0.43 0.27 3.12The following are the spot and the swap forward rates of the AUD/USD Spot 1.2500–1.2550 One-month 40–20 This means that the US dollar is selling at a forward discount. the US dollar is selling at a forward premium. the Australian dollar is selling at a forward discount. after allowing for transaction costs, both currencies sell at par.2. The following data are taken from the financial market pages of an Australian newspaper Forward Margins Forward Margins (Buy AS/Scll AS) 0/1 Forward Cortract 1 month 2 month 3 month 6 month 1/2 1/3 2/4 Т уear 2 years 3 years 0/1 -16/-8 51/-11 The data under the "Forward Margins" column represent the forward contracts for the US dollar with respeet to the Australian dollar (given in points form). (a) Using this data, and the bid-ask for spot USD at 0.7144 to 0.7145, compute the outright bidask rates for the following forward contracts: (i) 1 month (ii) 6 month (iii) 2 years (iv) 3 years (b) Caleulate the forward premium for the following contracts: (i) 2 month (ii) 3 month (iii) 6 month (iv) 1 year
- Study this Case and Answer Question Asked Below: On 19 April Following are the Spot Rates Spot EUR/USD 1.2000 USD/INR 44.8000 Following are the quotes for European Type Options Currency Pair Call/Put Strike Price Premium Expiry Date EUR/USD Call 1.2000 $0.035 July 19 EUR/USD Put 1.2000 $0.04 July 19 USD/INR Call 44.8000 Rs.0.12 Sep 19 USD/INR Put 44.8000 Rs.0.04 Sep 19 A Dealer believes that the spot rate for the Dollar will rise to INR 45.00 by September 19. So he decides to buy at the money call options. If his expectations are correct, his profit from BUYING call options FOR USD1.5 Million will be INR______. a. 110,000 b. 100,000 c. 120,000 d. 80,000Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each contract has 62,500 CHFs. Exercise prices, call and put premiums are in cents. Calls Vol. Last Puts Vol. Last 62,500 Swiss Francs-European Style. 77 Oct 10 2.78 77 Dec 31 3.60 78 Nov 47 0.23 78 Dec 14 2.66 100 0.43 79 Oct 50 0.27 79 Nov 5 1.59 79 Dec 5 2.04 80 Nov 5 1.00 80 Dec 21 1.39 81 Oct 1.41 81 Nov 0.59 10 1.55 81 Dec 6 645 0.99 82 Nov 10 0.33 83 Nov 47 0.20 is 3.12 83 Dec 6 0.40 You buy one November PUT options contract with an exercise price of $0.81. If at the time of the option expiration date, the spot price for Swiss francs is $0.815, then this Put option is _, and you incur a net in-the-money; profit of $312.50 O out-of-the-money; loss of $312.50A currency dealer quotes the following rates on the Swiss franc-U.S. dollar exchange rate in the following table. (Note: The base currency is listed first and the quote currency second.): USD/CHF Spot 1-month forward 3-months forward 6-months forward 1.2575-1.2585 10 to 15 12 to 20 20 to 30 What are the bid and ask exchange rate quotes for the 3-month forward? a. Bid CHF 1.2575 per $; Ask CHF 1.2585 per S O b. Bid CHF 1.2587 per $: Ask CHF 1.2605 per $ O Bid CHF 1.2563 per $; Ask CHF 1.2565 per $ O d. Bid CHF 1.2590 per $; Ask CHF 1.2600 per $
- Consider this (incomplete) table of FX cross-rates CHF Column EUR 1.0043 1.4167 USD USD EUR JPY 110.00 GBP CHF 1.4323 What number should be at the intersection of: Row 0.692 EUR JPY 1.2500 Example: the number at the intersection of Row "JPY" and Column "USD" is "110.00" and represents the number of JPY needed to buy one USD. GBP 2.4000 CHF 96.001. – Using the following information, determine each one of the theoretical Exchange Rates (E.R.) for December of year 02 according to the Relative PPP Theory. MARKET MARKET E.R. E.R. COUNTRY CURRENCY СРI CPI Dec-01 Dec-02 Dec-01 Dec-02 Mexico МХР 231.89 264.3546 19.56 20.15 Turkey TRY (Lira) 498 527.88 5.9419 6.07673 Australia AUD 989 1038.45 1.7759 1.81183 Japan JPY 678 745.8 105.866 113.978 United Kingdom GBP 905.26 986.7334 0.5991 0.617849 South Korea KRW (Won) 795.4 874.94 1,658.62 1,793.37 Canada CAD 523.12 554.5072 1.3736 1.4942 U.S.A. USD 1.5 1.56Indian rupee forward contracts. The Indian rupee (INR) is currently trading at INR 50 = US$1. With 90-day Indian-rupee and U.S. dollar treasury bills currently yielding 10 percent and 2 percent per annum, respectively, what would be the forward INR price of US$1? What assumptions are you making with respect to the credit rating of either government securities? Please explain the calculation Answer - INR 0.01970.
- Use the information below to answer the following questions. Currency per U.S. $ 1.2380 1.2353 Australia dollar 6-months forward Japan Yen 6-months forward U.K. Pound 6-months forward 100.3600 100.0200 .6789 .6784 Suppose interest rate parity holds, and the current six month risk-free rate in the United States is 5 percent. Use the approximate interest rate parity equation to answer the following questions. a. What must the six-month risk-free rate be in Australia? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What must the six-month risk-free rate be in Japan? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Australian risk-free rate b. Japanese risk-free rate c. Great Britain risk-free rate c. What must the six-month risk-free rate be in Great Britain? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % % %How to get the ans -1,874 basis points? pls explain with steps shown clearly Spot exchange rate (AUD/USD) 1.7624/1.7864 Six- month expected spot rate (AUD/USD) 1.4880/1.5120; Australian six-month interest rate 4.55/5.05% pa US six-month interest rate 1.18/1.68% pa Calculate the precise outward uncovered margin from an Australian perspective.The current USD/EUR exchange rate is [de] dollar per euro. The one-year forward exchange rate is [fe]. The one-year USD interest rate is [rus]% p.a. semiannually compounded. Estimate the one-year EUR interest rate (p.a. semiannually compounded, stated in percent). Inputs: de, fe, rus = 1.85, 1.75, 1.31 Tip: Use the CIP
