Calculate the aud-jpy cross rate

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Reference no: EM13194762

1 Calculate the AUD/JPY cross rate when the following FX spot rates are quoted:
• AUD/USD0.6066
• USD/JPY115.90
Give your answer rounded to 2 decimal places.
Cross rate =

2  Indicate whether the following factors would tend to increase or decrease FX trading spreads.
a)an increase in competition
b)decrease in turnover
c)increase in price volatility

3 What statement about spot and forward exchange rates is correct?

All trading occurs in the forward rate, none in the spot rate.

All cross rates must be quoted as forward rates.

All trading occurs in the spot rate, none in the forward rate.

The spot rate is for T+2 settlement, the forward rate is adjusted for delayed settlement.

4 The AUD is currently trading in the spot market for AUD/USD0.6952 and in the forward market at a premium of 8 points. What is the AUD/USD forward rate? Give your answer rounded to 4 decimal places.

Forward rate =

Reference no: EM13194762

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