Question: Spot RUB per one USD = 56.8139; one-year RUB interest rate = 7.75%; one-year USD interest rate = 1.75%. Answer with True or False:
a. The two-year forward exchange rate is RUB per one USD 63.119
b. The one-year RUB forward discount is 5.57%
c. The RUB is a premium currency because F > S
d. Both the spot and the forward rate are quoted European style
 Three months ago, Bank C bought 170 contracts of April 2018 short-term interest rate futures at a price of 98.20. The contract expires today, and the spot short-term interest rate is 2.35%. Answer with True or False:
a. Total profit USD 233,750
b. Profit per contract USD 1,375
c. Total loss USD 233,750
d. Loss per contract USD 1,375
 The March 2018 USD per one RUB contract trades at 0.01970 (contract size = RUB 2,500,000). The March 2018 USD per one EUR contract trades at 1.2030 (contract size = EUR 125,000). A trader who wishes to take a Long March RUB/Short March EUR position with a neutral view on the USD should use the following hedge ratio:
a. 3 RUB contracts per 1 EUR contract
b. 1 RUB contract per 3 EUR contracts
c. 1 RUB contract per 1 EUR contract
d. None of the above
 Spot USD per one GBP = 1.4165; one-year GBP interest rate = 3.50%; one-year USD interest rate = 1.75%. Answer with True or False:
a. The one-year forward exchange rate is GBP per one USD 0.7181
b. The one-year forward exchange rate is USD per one GBP 1.4409
c. The one-year forward exchange rate is USD per one GBP 1.3925
d. The one-year forward exchange rate is GBP per one USD 0.6940
e. The British pound trades at a forward discount to the US dollar.
f. The British pound trades at a forward premium to the US dollar.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more