Show how you can take advantage of this series

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Question -

1. Describe with examples key players in global financial market.

2. Using any exchange rate quotes taken from the Web (you can go to www.oanda.com/currency.....) or financial newspaper, explain the following:

i. Direct quote and indirect quote

ii. Spot and forward exchange rate

iii. Cross exchange rates

iv. Currency appreciate and depreciate

v. Forward premium and forward discount

3. Describe currency arbitrage and its importance.

4. You are given the following series of exchange rates for the US dollar $, the Canadian dollar C$ and the British pound £: $0.6000/C$; $1.2500/£; C$2.5000/£.

Assuming that you have $1,000,000 in cash, show how you can take advantage of this series of exchange rates and the profit you would make.

Reference no: EM133186730

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