Chapter 4 Bus 177

1
Chapter 4Bus 177

• Salina Ramirez
• Karina Deras
• Philippe Zervogiannis
• Mersiha Salihbasic
• Ryan Huth

2
Problem 1 Karina Deras

• Formula Beg. End Indirect quotation
• End
• RM 3.800/ 2.700 3.800 X 100 -28.94
• RM 2.700/ 3.800

It depreciates by 29
3
Problem 5Salina Ramirez

• FO SP x 360 x100
• SP N
• 1.0903-1.0899 x 360 x 100
• 1.899 7
• 1 week - 1.8874
• 1 month - 1.9810
• 2 month - 1.9267
• 3 month - 1.9818
• 4 month - 2.0368
• 5 month - 2.0970
• 6 month - 2.0735
• 9 month - 2.1530
• 1 year - 2.2387
• 2 years - 2.5100
• 3 years - 3.5783
• 4 years 2.2937
• 5 years 2.2075

• As the premium gets larger it starts to depreciate

4
Problem 6 Mersiha Salihbasic

• A. Cross- rate
• Dkr 8.5515/ .2762737 Dkr/ R
• R 30.953/
• B. Converting Dkr in to Rubles
• Dkr10000
• .276273/R 36,195.99R

5
Problem 7Philippe Zervogiannis

• Investment SF 10,000,000
• Exchange with Matterhorn bank
• 10,000,000SF Y80/SF 800,000,000Y
• Exchange with Mount Fuji bank
• 800,000,000Y Y120/ (1/120)
  6666666.66666667
• Exchange with Mt Rushmore
• 6666666.6666667 SF1.6/ 10,666,666.67SF
• 10,666,666.67
• - 10,000,000.00
• 666,666.67 (profit in Swiss francs)

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Cross rate JPY 120/ JPY 75/SF SF 1.6/
10,666,666.67 10,000,000.00
_
SF 666,666.67
Investment SF10,000,000
Zero Interest
?
?
SF10,000,000
SF10,666,666.67
EX SP JPY80/SF
?
Cross rate SP JPY75/SF
?
?
JPY800,000,000
?
JPY800,000,000
?
Zero Interest