On June 15, 2023, sport Malaysian Ringgit was sold at MYR 4.80/. Suppose the 90 days forward Malaysian Ringgit was selling at 5.13% annualized discount. What is the 90 days forward rate of the Malaysian Ringgit?
Added by Alex B.
Step 1
The annualized discount for the Malaysian Ringgit is given as 5.13%. Show more…
Show all steps
Your feedback will help us improve your experience
Adi S and 59 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
(iii) Assume that the interest rate for China is 6% and Malaysia is 7% and calculate the 3-month forward rate for MYR/RMB. (2 marks) QUESTION 1 a) Spot rate 30-day swap rate 90-day swap rate MYR0.6500/0.6550/RMB 65/75 75/68 SGD0.3220/0.3257/MYR 54/48 54/65 Based on the above information, you are required to:
Adi S.
The spot rates, 3- month forward rates and 3-month future (speculation) spot rates for the MYR respectively are as below: Buy Sell MYR/$ Spot 4.5311 4.6311 3-month Forward 4.5445 4.6445 3-month Future (speculation) 4.7645 4.8645 US interest rates: 2% per annum Malaysia interest rates: 4 % per annum If your company is prepared to put MYR 1 million at risk on the deal, show and name clearly at least TWO possible strategies that might be taken by you. Ignore whether the strategies could result to a loss or gain. Consider all interest rate implications.
Supreeta N.
a) The following information is provided by Aurora Borealis Advisors. There are several different exchange rate circumstances for currency transaction. Currency Exchange Rates Maturity: Spot Value of Malaysian Ringgit (RM) in Australian Dollar (AUD) - Bid: 0.4000, Ask: 0.5000 Value of Jordanian Dinar (JOD) in Malaysian Ringgit (RM) - Bid: 4.2000, Ask: 4.3000 Maturity: 30-day Value of Malaysian Ringgit (RM) in Australian Dollar (AUD): 20/10 Value of Jordanian Dinar (JOD) in Malaysian Ringgit (RM): 10/20 Maturity: 60-day Value of Malaysian Ringgit (RM) in Australian Dollar (AUD): 15/25 Value of Jordanian Dinar (JOD) in Malaysian Ringgit (RM): 25/15 Three-Month Interest Rates (Percent) Malaysia: 3.0 Australia: 3.5 Jordan: 2.5 You are required to show your workings based on the given information of the currency exchange rates. (9 marks) i) Calculate the outright rates of RM per AUD at 30 days. ii) Compute 2-month forward bid outright RM per JOD. iii) Compute the percentage spread on the spot AUD per JOD quotation. iv) Determine bid and ask rates of AUD per JOD in 90 days. v) Calculate 3-month annualized premium (discount) of AUD in JOD.
Akash M.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD