Calculate the trader end of day profit and loss in dollars

Assignment Help Financial Management

Reference no: EM131989820

You are the head of dealing room at HSBC. You started the day with cash in hand of 1 million Dollar. You executed the following transactions:

Bought EUR 100,000 at a rate of USD/ EUR spot 0.82/0.83

Bought GBP 100,000 at a rate of USD/ GBP spot 0.72/0.73

Bought one million EGP at a rate of USD/ EGP 17.61/17.62

Bought 100,000 SAR at a rate of USD/ SAR 3.75/3.76

Bought 100,000 AED against EGP at a rate of AED/EGP 4.8/4.81

Bought 10,000 AUD against SAR at a rate of AUD/SAR 2.93/2.94

Bought 100,000 Yen against EUR at a rate of EUR/JPY 130/131

Bought CAD against GBP at a rate of CAD/GBP 0.56/0.57

At the end of the day, you converted all currencies you have on hand into USD. The quoted exchange rates at end of day were: USD/EUR: 0.81/0.82, USD/GBP: 0.73/0.74, USD/EGP: 17.6/17.61, USD/SAR: 3.76/3.77, USD/AED: 3.67/3.68, USD/AUD: 1.28/1.29, USD/JPY: 107/108, USD/CAD 1.29/1.3.

Required:

Calculate the trader’s end of day profit / loss in US Dollars. (Show all steps & calculations)

Reference no: EM131989820

Questions Cloud

The required return equal to the expected return : what is the value of the stock today (assume the market is in equilibrium with the required return equal to the expected return)?

The current foreign exchange market is characterized : The current foreign exchange market is characterized by:

Fictionalized recap of what happened in securities market : Basically, "The Big Short" is a movie and a fictionalized recap of what happened in the securities market and banking sector when the subprime fiasco took place

Reflects that government tries to manipulate its value : While an exchange rate is determined by the market, reflects that a government tries to manipulate its value.

Calculate the trader end of day profit and loss in dollars : Calculate the trader’s end of day profit / loss in US Dollars.

How much is dominique savings worth : How much is Dominique's savings worth today given that the earned an annual return of 5.5% until just after she made the 15th payment and 6% since then.

Should real estate investor try to be debt-free : Should a real estate investor try to be "debt-free?" Why or why not?

Promotional pieces mailed and anticipated response rate : A firm wishes to analyze the relationship between the number of promotional pieces mailed and the anticipated response rate.

Fair value of the non controlling interest at acquisition : The fair value of the non -controlling interest at acquisition was $22,000 What was the goodwill arising on acquisition of Rap Co?

User Account

All Pages