User Account

All Pages

What is the exchange rate that you will use to buy eur

Assignment Help Finance Basics
Reference no: EM132645477

You and your sister, Jane, plan to participate in the "Study Abroad" program this winter. You plan to go to Frankfurt, Germany and Jane will visit Tokyo, Japan. Both of you need to transfer your USD to the respective foreign currency right now. Here is the market data: EURUSD spot rate: the big figure is 1.19; market quotes are: 92/95. USDJPY spot rate: the big figure is 106; market quotes are: 65/68.

a. What is the exchange rate that you will use to buy EUR? What is your bid-ask spread in percentage?

b. What is the exchange rate that Jane will use to buy JPY? What is her bid-ask spread in percentage?

c. What are the EURJPY cross-exchange bid and ask rates, assuming there is no transaction cost, and the liquidity is very similar? (make sure you use the correct bid or ask rate)(6 points) What is the bid-ask spread in percentage for EURJPY?

Reference no: EM132645477

Questions Cloud

What is the definition of the cross rate arsclp : What is the definition of the cross rate ARSCLP? How much is the cross rate ARSCLP?
Determine Diego recognized gain on the transfer : The corporation assumes the liability on the transferred real estate in the amount of $300,000. Determine Diego's recognized gain on the transfer
What is meant by developing a theoretical framework : What is meant by developing a theoretical framework for damages, and why is a framework important for a forensic accounting expert?
Factoring or pledging accounts receivable in a business : What is the difference between factoring or pledging your Accounts Receivable in a business?
What is the exchange rate that you will use to buy eur : What is the exchange rate that you will use to buy EUR? What is your bid-ask spread in percentage?
How much time does the auditor have to assemble : How much time does the auditor have to assemble the final documentation file? How long must this documentation be retained?
Determine Jocelyns recognized gain or loss : The land is subject to a $15,000 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received
Determining the brian net profit on the put option : Also, assume that there are 50,000 units in an AUD option. What was Brian's net profit on the put option?
Explain what is the institute of management accountants : What is your understanding of the difference between a CMA and a CPA certification? what is the Institute of Management Accountants?

Reviews

Write a Review

Finance Basics Questions & Answers

  How can this information be used to benefit the business

What does the mean and standard deviation mean in terms of expected sales? How can this information be used to benefit the business?

  Change in income affect the family''s emergency fund needs

How will this change in income affect the family's emergency fund needs?

  What is the npv

What is the NPV

  Palmer corp is considering a project which has the

palmer corp is considering a project which has the following incremental operating cash flows. if the firm wacc is

  Compute the total interest cost under each plan

Biochemical Corp. requires $590,000 in financing over the next three years. The firm can borrow the funds for three years at 9.00 percent interest per year.

  What is the primary goal of investor-owned corporations

Are there substantial differences between the finance goals of investor-owned and not-for-profit corporations? Explain.

  What is the npv for acquiring firm b

The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash.

  What is the company cost of equity

Irving Corp. has no debt but can borrow at 5.75 percent. The firm's WACC is currently 10 percent, and there is no corporate tax.

  Which option should she take

If Gabrielle can earn 5% annually on her investments, from a strict economic point of view which option should she take?

  What is the project modified irr

Timco's CEO attended a conference and heard about the modified IRR. He decides that this is what the company should use to analyze projects

  Find how much does output increase

Consider the Solow growth model and the following production function: Y= K^0.3(AL)^0.7A) If A= 2, L= 20,000 and K=400 what is Output?B) Suppose the Labor force grows by 5% so that it is now 21,000. By how much does output increase?C) Starting again ..

  Compute trend analysis for net revenue and net income

Computing trend analysis Midnight Oaks Realty's net revenue and net income for the following five-year period, using 2013 as the base year, follow.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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