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...

Short answers


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? 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?