A. SHORT ANSWER (10 marks each). Write down your answer with all accompanying calculations.Assume...

Question

A.
SHORT ANSWER (10 marks each). Write down your answer with all accompanying calculations.
Assume that you are a retail customer. Use the information in the table below to answer the next 4 questions.


    Bid

    Ask



    Bid
    Ask
    S0($/€)

    $1.40 = €1.00

    $1.43 = €1.00

    i$

    4.10% APR
    4.20% APR
    F360($/€)

    $1.44 = €1.00

    $1.49 = €1.00

    i€

    3.50% APR
    3.65% APR
41) If you bo
owed $1,000,000 for one year, how much money would you owe at maturity?
42) If you had €1,000,000 and traded it for USD at the spot rate, how many USD would you get?
43) If you had €1,000,000 and took a position in USD in the forward market, how many USD would you get one year from now?
44) If you had €1,000,000 and lent for one year in the US market, how many USD would you get one year from now?

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Brijesh · Accepted Answer

A. 
SHORT ANSWER (10 marks each).  Write down your answer with all accompanying calculations.
Assume that you are a retail customer. Use the information in the table below to answer the next 4 questions.
	 
	 
	Bid
	 
	Ask
	 
	 
	 
	Bid
	Ask
	S0($/€)
	 
	$1.40 = €1.00
	 
	$1.43 = €1.00
	 
	i$
	 
	4.10% APR
	4.20% APR
	F360($/€)
	 
	$1.44 = €1.00
	 
	$1.49 = €1.00
	 
	i€
	 
	3.50% APR
	3.65% APR
41) If you borrowed $1,000,000 for one year, how much money would you owe at maturity?
When you borrow money,

A. SHORT ANSWER (10 marks each). Write down your answer with all accompanying calculations. Assume that you are a retail customer. Use the information in the table below to answer the next 4...

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