QUESTION 6 You observe the following information on exchange rates AUD1=￥8673/8500 1) If I wanted to buy y 100 million, how much AUD would I sell? b) IfI wanted to buy aUd 5 million, how much y would I sell? QUESTION 7 The bank gives you the following quote Spot AUD/USD0.5240-50 12-16 6 month 20-17 a) What is the SPOT SPREAD? b What are the 3 and 6 month OUTRIGHTFORWARD RATES? c) How does the outright forward rate differ from the forward rate? d) Is the aud at a premiumor discount in the 3 mnth forward market? 6 mnth forward market? e) You are an Australian exporter expecting USD I million in 3 months time. Minimise your oreign exchange risk You are an austral ian importer required to pay USD I million in 6 months time. Minimise your foreign exchange risk QUESTION 8 A foreign exchange trader quotes the rate USD0.5815/20=AUDI a) What is the bid-ask spread? b) What will it cost you in AUD to buy USD I million? c) How much in AUD will you receive if you sell USD 2.5 million?October 2003 QUESTION 6 You observe the following information on exchange rates: AUD 1 = ¥ 86.73/85.00 a) If I wanted to buy ¥ 100 million, how much AUD would I sell? b) If I wanted to buy AUD 5 million, how much ¥ would I sell? QUESTION 7 The bank gives you the following quote: Spot AUD / USD 0.5240-50 3 month 12-16 6 month 20-17 a) What is the SPOT SPREAD? b) What are the 3 and 6 month OUTRIGHT FORWARD RATES? c) How does the outright forward rate differ from the forward rate? d) Is the AUD at a PREMIUM or DISCOUNT in the: - 3 mnth forward market? - 6 mnth forward market? e) You are an Australian exporter expecting USD 1 million in 3 months time. Minimise your foreign exchange risk. f) You are an Australian importer required to pay USD 1 million in 6 months time. Minimise your foreign exchange risk. QUESTION 8 A foreign exchange trader quotes the rate USD0.5815/20 = AUD1. a) What is the bid-ask spread? b) What will it cost you in AUD to buy USD 1 million? c) How much in AUD will you receive if you sell USD 2.5 million?