Compute the inr and eur cross exchange rate

Assignment Help Financial Management
Reference no: EM131990115

1. Take the following two exchange rates and compute the INR/EUR cross exchange rate. USD.0825/INR and EUR.8150/USD

2. In the previous question, if there is a direct cross exchange rate of INR 13.94/ EUR, is there a triangular arbitrage opportunity? If yes, start with $50,000 and indicate how much triangular arbitrage profit exists for 1 trip around the triangle.

Please explain it step by step.

Reference no: EM131990115

Questions Cloud

Start saving for your retirement : You are 30 years old and decide to start saving for your retirement. How much will you have saved for? retirement?
Compute the current price of bond : Compute the current price of the bond. Find the present value of 5 percent × $3,200 (or $160) for 24 years at 12 percent.
What is the npv of investment opportunity : What is the NPV of the investment opportunity if the interest rate is 6% per? year? Should you take the? opportunity?
External financing will tobin supplies company have to seek : he company has a steady profit margin of 25 percent with a 40 percent dividend payout. How much external financing will Tobin Supplies Company have to seek?
Compute the inr and eur cross exchange rate : Take the following two exchange rates and compute the INR/EUR cross exchange rate. USD.0825/INR and EUR.8150/USD
Positive correlation between prices and trading volume : In housing markets, there is a positive correlation between prices and trading volume.
Sell for immediately after firm pays dividend in one year : What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current? price?
What is the value of the swap to the party paying floating : A $100,000 interest rate swap has a remaining life of 10 months. What is the value of the swap to the party paying floating?
Which bank has the most competitive bid price : Which bank has the most competitive ask price? Which bank has the most competitive bid price?

Reviews

Write a Review

Financial Management Questions & Answers

  Reduce the exchange rate risk arising from the sale

Plains States is considering several hedging alternatives to reduce the exchange rate risk arising from the sale.

  What is the market price of face value bond

Gugenheim, Inc. offers a 9% coupon bond with annual payments. What is the market price of a $1,000 face value bond?

  Problem 130 year monthly mortgage was 450000 with annual

problem 130 year monthly mortgage was 450000 with annual interest rate of 5.what is the principal for first year

  Lease payments due at the beginning of the month

Suppose that the dealer offers to lease you the car for $297/mo. For 16 months with $4,000 down, lease payments due at the beginning of the month.

  What will the initial outlay for the project be

Faraway decides to adjust for these flotation costs by adding them to the initial outlay, what will the initial outlay for the project be?

  Corporate trustee in order for the trust to be valid

Which of the following statements pertaining to Medicaid is correct? A revocable trust will become irrevocable when the trust beneficiary dies. An irrevocable trust must have a corporate trustee in order for the trust to be valid.

  What rate of return does investor expect to receive on stock

Digging Deep Company's common stock is currently selling for $159.62 per share. Next year, the company dividend is expected to be $10.05 per share. The projected growth at a rate of dividends for this stock is 4.83 percent per year. What rate of retu..

  The present value of company

The present value of Company A is $1,200,000 at a 12% discount rate. Assuming nothing else changes,

  No dividends will be paid on the stock over next nine years

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a $10 per share dividend 10 years from today ..

  Weight of each stock in the minimum variance portfolio

What is the weight of each stock in the minimum variance portfolio?

  Widgets to be shipped to the czech republic

Your company, Acme Widgets, sells its widgets worldwide. Acme has a contract for 250,000 widgets to be shipped to the Czech Republic.

  List the objectives that banks have for buying securities

List the objectives that banks have for buying securities. Explain the motive for each.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd