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Homework answers / question archive / Country AMERCIAN TERMS ($ / EUROPEAN TERMS ( / $ BID ASK BID ASK NZ$ 0
Country |
AMERCIAN TERMS ($ / |
EUROPEAN TERMS ( / $ |
||
BID |
ASK |
BID |
ASK |
|
NZ$ |
0.4660 |
0.4667 |
||
SG$ |
0.5705 |
0.5710 |
Working : NZ $ : Bid = 1/0.4667 = 2.1427
NZ$ : Ask = 1/0.4660 = 2.1459
SG$ : Bid = 1 / 0.5710 = 1.7513
SG$ Ask = 1 / 0.5705 = 1.7528
Answer (b):
Cross Currency for SG$ priced in NZ$
BID = NZ$(1.7513*0.4660)/SG$ = NZ$0.8161/SG$
Answer (c):
Cross Currency for SG$ priced in NZ$
ASK = NZ$(1.7528*0.4667)/SG$ = NZ$0.8180/SG$
Answer (d):
Sell 2000 NZ$ to $ :
= 2000 * 0.4660
= $932
SELL 1500 SG$ to $ :
=1500 * 0.5705
= 855.75 or 856
Total $ Received = $932+$856 = $1788
Answer (e):
BUY 1000$ by selling SG$:
SG$ needed = 1000 / 0.5705 = 1752.85 or 1753 SG$
Alternative : 1000 * 1.7528 = 1752.8 or 1753 SG$
please see the attached file for complete solution