User Account

All Pages

What is the 3 month forward eur-usd exchange rate

Assignment Help Finance Basics
Reference no: EM132478116

The current EUR/USD exchange rate is 1.10. The current European interest rate (c.c.) is -0.4% (!), and the current USD interest rate (c.c) is 0.8%. The volatility of the EUR/USD exchange rate is something like 15%.

  1. What is the 3 month forward EUR/USD exchange rate?
  2. Which currency is (expected to be) getting stronger?
  3. If you thought the forward EUR/USD exchange rate was too high, would you prefer a 3 month call on 10,000 Euros or a 3 month put on 10,000 Euros (both struck at the forward exchange rate from 1))?
  4. What would your option of choice cost you?
  5. What would the actual exchange rate have to be (in 3 months time) for you to break even?

Reference no: EM132478116

Questions Cloud

Calculate the amount of the firm after-tax cash flow : Moby Dick Corporation has sales of $4,498,806; income tax of $544,658; the selling, general and administrative expenses of $208,071; depreciation
What is the bond price : The bond has a 10% coupon rate which is paid annually and a 4% yield to maturity. What is the bond price?
What about fiesta movement social media campaign : What about Fiesta Movement social media campaign? How did the use of social media in China influence the "Fiesta Movement"
Discuss and analyze marketing report : Select a global or multi-regional (does business in more than one country) company and one of its products or services that will serve
What is the 3 month forward eur-usd exchange rate : The current EUR/USD exchange rate is 1.10. The current European interest rate (c.c.) is -0.4% (!), and the current USD interest rate (c.c) is 0.8%.
What does malware free mean : Consider the following questions: What does "malware free" mean? How can a user demonstrate that their computer or device is malware free?
Companies of paying executives with stock options : What are some potential benefits to companies of paying executives with stock options? What are some potential risks to companies of paying executives
What was the arithmetic average return : What was the arithmetic average return on Crash-n-Burn's stock over this five-year period?
Why the brand lacks social symbolism : Why the brand lacks "social symbolism"? Why the brand lacks "brand recall"? what you would say should be written clean and cited.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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