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Here Are Some Quotes for Spot Exchange Rates and Three-Month

Question 13

Essay

Here are some quotes for spot exchange rates and three-month interest rates:
Spot exchange rates:
$/€ 1.1865-1.1870
¥/$ 108.10-108.20
Interest rates:
Three-month euro-$ 5-51/4
Three-month euro-€ 31/4-31/2
Three-month euro-¥ 11/4-11/2
What should the quotes be for:
a. The ¥/€ spot exchange rate?
b. The €/$ three-month forward exchange rate?
c. The ¥/€ three-month forward exchange rate?

Correct Answer:

verifed

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a. ¥/€ bid =108.10 *1.1865= 128.2606.
¥/...

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