18. If the spot rate of the Israel shekel is $.32 and the six month forward rate is $.30, what is the forward premium or discount on an annual basis?

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asked 12 years ago in Economics by anonymous

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17. If the spot rate of the Malaysian ringgit is $.30 and the six month forward rate of the ringgit is $.32, what is the forward premium or discount on an annual basis?

asked 12 years ago in Economics by anonymous

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28. You purchase a call option on British pounds for a premium of $.04 per unit with an exercise price of $1.65. The option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.67, your net profit or net loss per unit is:

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21. Assume: (1) the US annual interest rate = 10%; (2) the Malaysian annual interest rate = 4%; and (3) the 90-day forward rate for the Malaysian ringgit = $.3864. At what current spot rate will interest rate parity hold?

asked 12 years ago in Economics by anonymous

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29. For the following import purchase, calculate the annual cost of the cash discount forgone, and determine the date and amount paid if the discount is taken: $100, 4/10, net 30. Assume that the invoice date is March 20 and that there are 30 days in a month.

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27. The premium for a British put pound with an exercise price of $1.70 is $.05. What is the breakeven spot rate for the buyer of the put?

asked 12 years ago in Economics by anonymous