What is forward premium or discount on the 180 day euros

Assignment Help Finance Basics
Reference no: EM13297466

An investor wishes to buy euros spot ( at $ 1.3480) and sell euros forward for 180 days (at $1.3526). a- what is the swap rate on euros? b- what is the forward premium or discount on the 180-day euros?

Reference no: EM13297466

Questions Cloud

Find the distance from the ramp to where the jumper lands : A skier leaves the ramp of a ski jump with a velocity of 30.0 m/s The slope is inclined at 50.0°, Find the distance from the ramp to where the jumper lands
Explain what is the ratio of average molecular velocity : Given: Volume of He sample = 72.5mL Temperature = 30 C Atmospheric pressure = 785 mmHg Equilibrium vapor pressure of water at 30 C = 31.88 mmHg What is the ratio of average molecular velocity between He(g) and H2O(g)
Discuss the profitability versus risk trade-offs associated : Discuss the profitability versus risk trade-offs associated with these conservative and aggressive working capital financing policies.
Explainthe sodium emission intensity from the diluted sample : The sodium emission intensity from the diluted sample is 0.092. The calibration curve for sodium is INa = 0.083 L.mg-1 [Na] + 0.001. What is the concentration of Na in the diluted carrot solution? What is the concentration of Na in the concentrate..
What is forward premium or discount on the 180 day euros : An investor wishes to buy euros spot ( at $ 1.3480) and sell euros forward for 180 days (at $1.3526). a- what is the swap rate on euros? b- what is the forward premium or discount on the 180-day euros?
What percentage of initialintensity is transmitted by system : initially unpolarized light is sent into a system of three polarizing sheets whose polarizing directions make angles of ?1 = ?2 = ?3 = 51° with the direction of the y axis, What percentage of the initial intensity is transmitted by the system
Determine what was the distance between the markers : A 100 ft cut steel tape was used to measure between two property markers. The rear surveyor held 93 ft, while the head surveyor cut .67ft. What was the distance between the markers
Suppose a currency increases in volatility : Suppose a currency increases in volatility. what is likely to happen to its bid-ask spread? why?
Explain what is the percent water in the carrot sample : The mass of a beaker is 123.2537 g. After carrots were added to the beaker, its mass is 128.2671 g. The sample was then placed in the oven to remove water.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the dollar amount of dividends

Bobby purchased a stock one year ago for $25. The stock is now worth $30, and the total return to Bobby for owning the stock was 0.37. What is the dollar amount of dividends that he received for owning the stock during the year?

  Calculation of payback period, npv and pi of project

Calculation of Payback period, NPV and PI of project and what is the payback period for the proposed investment

  Finance based multiple choice questions

A coffee corporation has buying operations in New York, production facilities in three roasting plants scattered throughout the Midwest and marketing functions in Texas.

  What is the firm income tax liability

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

  Which of the two stocks is relatively riskier

The stocks of Spaulding (S) and Johnson (J) Corporations have the following risk and return statistics: E(rJ) = 14%, ?J = 22%; E(rS) = 16%, ?S = 25%. [Round any calculation to two decimal points]

  Prepare a schedule showing unit and total depletion

Cleanburn Coal Corporation bought coal-leasing land that contains 800,000 tons of coal for $21,700,000. Soil test through geologist cost $35,250 for the purchased land, but test at other sites that yielded negative results cost $116,250.

  Computing gain from merger

Velcro Saddles is contemplating the acquisition of Pogo Ski Sticks, Inc. The values of the two companies as separate entities are $20 million and $10 million, respectively. What is the gain from merger?

  Calculation of current market price of the share

Calculation of current market price of the share and  What is the intrinsic value of the warrant and What is the speculative premium on the warrant?

  Compute the weighted average cost of capital of the firm

The cost of equity capital is 12% and the pretax cost of debt is 7%. If the marginal tax rate of the firm is 40%,compute the weighted average cost of capital of the firm. Choose the answer that is closest.

  What is the value of tax shields in each period

Such a capital cost is depreciated to zero with the straight-line method. Assume a 34% corporate tax rate and a discount rate of 10%.

  Important finance question

Define investment banking and How would the investment banker assist an organization in going public?

  Prepare dated journal entries to record the transactions

Prepare dated journal entries to record the transactions shown above. Assume that Econ did not enter into a forward contract.  Prepare dated journal entries to record the transactions

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd