Here are some quotes of the Burundi Franc/U.S. Dollar spot exchange rate given at once via internet by four banks: Bank Yellow: 1,945.8871-1947.2134 Bank Purple: 1,945.8921-1947.5021 Bank Blue: 1,947.3112-1948.9978 Bank Pink: 1,947.1981-1948.8697 According to these quotes; Are there any arbitrage opportunity?

Q: The foreign exchange department of Bank of America has a bid quote on Canadian dollars (C$) of…

A: Spread % = Ask Price - Bid PriceAsk Price x 100

Q: Country Contract $/Foreign Currency Canada – Dollar Spot 0.8437 30-day 0.8417 90-day 0.8395 Japan –…

A: The cross rate is the rate between two currencies whose values have been given in terms of a third…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: Depreciation of a currency means that the value of the currency with respect to the other decreases,…

Q: A banker in London is given the following exchange rates: SF in Zurich: 1.8900- 1.8950 SF/1$ £ in…

A: Here, Quote for SF/$  is 1.8900 -1.8950 SF/$ Quote for $/£ is 1.4310-1.4350 $/£ In this, the US…

Q: An Australian firm asks the bank for an AS/SFr quote because it received SFr and wants to change it…

A: Calculate the ask rate of US$/SFR by dividing 1 by the bid rate of SFR/US$ which is 1.4950. Thus,…

Q: Suppose it is January 1980 and the USD/Deutsche Mark (DM) exchange rate is DM1 = 0.84 and the…

A: Given Information :USD/Deutsche Mark Exchange Rate DM1 = 0.84 Deutsche Mark/ French Franc Exchange…

Q: An Australian firm asks the bank for a SFr/AS quote because it received SFr and wants to change it…

A: Calculate the bid rate of US$/A$ by dividing 1 by the ask rate of A$/US$ which is 1.5250. Thus, the…

Q: A bank is quoting the following exchange rates against the dollar for the Swiss franc and the…

A: Formula used:

Q: An Omani investor wants to invest $20000 in US securities.  The exchange rates posted by four U.S.…

A: Convert all bank rates into OMR/USD rates: Particulars USD/OMR OMR/USD - Working OMR/USD Bank…

Q: Table 2 gives the exchange rate quotations for the U.S. dollar and the British pound. Table 2.…

A: a) U.S Dollar equivalent means, amount of dollars for each pound Currency per dollar means, amount…

Q: Country Contract $/Foreign Currency Canada – Dollar Spot 0.8437   30-day 0.8417   90-day…

A: The rates of yen and Canadian dollar provided above is not relevant in order to identify the series…

Q: Use the information below to answer the following questions.     U.S. $ EQUIVALENT CURRENCY PER U.S.…

A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…

Q: a) Indirect dollar quotes for yen and pound are 100.2468-3579 and 1.3579-654, respectively. What is…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: The foreign exchange rates: The foreign exchange rates refer to the trading of one currency for…

Q: Suppose it is January 1980 and the $/DM exchange rate is DM1 = $0.36 and the DM/FF exchange rate is…

A: The question is based on the concept of Forex transactions.

Q: Use the following table to answer questions: Country (currency) Canada (dollar) Denmark (krone) Euro…

A: Exchange Rates on Jun2 30, 2010 1 USD($) = 7.782 Sweden krona (SKr) Exchange Rates on Jun2 30, 2009…

Q: Suppose you observe the following direct spot quotations in New York and Toronto, respectively:…

A: Solution-(1)Direct spot quotation in New York                                Bid…

Q: Suppose Dassie Bank quoted the exchange rate of Singapore dollar in US$ at $0.60, the pound rate in…

A: Foreign exchange currency rates are those rates which are used for exchange of one foreign currency…

Q: A bank in Toronto charges 2.00% commission to buy and sell currencies. Assume that the current…

A: Exchange rate  US$1 = C$1.3283 Commission rate = 2.00%

Q: New York simultaneously calls Citibank in New York City and Barclays in London. The banks give the…

A: Given, Citi Bank NYC : Bid: $0.7551 = 1.00 Euros Ask: $0.7561 = 1.00 Euros Barcalys London : Bid…

Q: A bank is quoting the following exchange rates against the dollar for the Swiss franc and the…

A: Cross Rate: Cross Rate is the rate calculated when the direct exchange rate between the currency are…

Q: Suppose that a commercial bank’s current quote for transactions involving the United Kingdom pound…

A: A bid is the highest price a buyer will pay for a security and ask is the lowest price a seller will…

Q: A bank in Mississauga has a buying rate of ¥1 = C$0.01275. If the exchange rate is ¥1 = C$0.01315,…

A: Buying rate = ¥1 = C$0.01275 exchange rate = ¥1 = C$0.01315

Q: On December 1, 20x1, you imported a machine from a foreign supplier for $100, 000, due for…

A: Difference in exchange rate=Rate on Dec 1-Rate of Dec 31=P 50-P52=-P 2

Q: In September 1997 Malaysian central bank decided to cap (or peg) the value of the RM against the USD…

A: RM against USD = 3.8 RM

Q: A bank in London, Ontario has a buying rate of CHF 1 = C$1.3525. If the exchange rate is CHF 1 =…

A: Given information: Buying rate CHF 1 is C$1.3525 Exchange rate of CHF 1 is C$1.3819

Q: X, a banker in London has been given the following exchange rates:SF in Zurich : 1.8900-1.8950…

A: SF / £ : 1.8900-1.8950 to Swiss Customer (SF) $ / £ : 1.4310-1.4350 to US Customer (USD)   £ / $ =…

Q: You are given the following quotes: U.S. dollar/Mexican Peso = 0.2501 U.S. dollar/Australian Dollar…

A: To calculate the cross rate for Chines Yuan/Australian Dollar, simply divide U.S. Dollar /Australian…

Q: A product sells for $750 in the United States. The spot exchange rate is $1 to 1.56 Swiss francs. If…

A: The spot rate is referred as the rate of a foreign exchange contract where the delivery is immediate…

Q: The following four banks of Switzerland have offered exchange rates against OMR to Mr. Ammar:…

A: Exchange Rates against OMR are provided below: CHF/OMR Rates are: Bank  Bid Ask Swiss National…

Q: Peter Sheffield has Euros (E) amounting to €500,000 and is provided with the following quotes: Bank…

A: To determine whether an arbitrage opportunity exists or not, it is required to analyze the buying…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: Here discuss about the details of the currency exchange rate of different national and its…

Q: If Bank A quotes you an exchange rate of $1.11 per pound. The same bank also quotes exchange rates…

A: Solution:- Given that 1 Pound = $1.11 Therefore $1 = 1/1.11 Pounds

Q: A bank in London, Ontario charges 3.25% commission to buy and sell currencies. Assume that the…

A: Commission = 3.25% Exchange Rate: 1USD = 1.3015 CAD

Q: Here are some quotes of the Burundi Franc/U.S. Dollar spot exchange rate given at once via internet…

A: Foreign exchange- Foreign exchange is the conversion of one currency into another at a specific rate…

Q: A bank in Toronto charges 3.25% commission to buy and sell currencies. Assume that the current…

A: Amount of Canadian Dollars that may be required to be paid for purchasing certain amount of US…

Q: Based on the table below, which currencies appreciated between January and March? Name of Currency…

A: The appreciation of currency is linked to the strengthening of the local currency. In the given…

Q: 1. Based on the latest exchange rates, how much does one USS, Euro, British Pound, Mexican Peso, and…

A: As per the latest exchange rates, a. 1 US$ would cost 1.2738 CAD$ b. 1 Euro would cost 1.5380 CAD$…

Q: XYZ entered into a currency swap with its bank, and borrowed $10 million at 9% and swaps for a 11%…

A: Currency Swap In currency swap, two parties agree to trade payments of principal and interest made…

Q: Answer the attached question

A: The price at which one currency is exchanged for another currency is called as exchange rate.  For…

Q: newspaper provides spot exchange rate of $1 = £.7555 and 1-year forward rate of $1=£.7755. You’ll…

A: In this we need to find out cross exchange rate between two currencies.

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.