See Attached File

See Attached File


ENMB2645 [Modular] Assignment Units 1 and 2 Due dates: 3/10 September 2021 Instructions: 1. Show all calculations in detail. Do not simply write down an answer. Calculations are just as important as answers. Question 1 [30 marks] Refer to the following foreign exchange rate quotations to answer the questions below. Note that the notation is in the format specified in class (i.e. the base currency is second): Latest mid-rate Change from day before % change ZAR/USD 15.2351 -0.3222 ?? ZAR/EUR 17.8025 -0.2565 -1.40% ZAR/GBP 20.7685 ?? -0.75% USD/EUR 1.2025 0.0007 0.06% CHF/EUR ?? 0.0059 0.41% JPY/CHF 116.4200 1.1125 0.96% CNH/JPY 0.0593 -0.0015 -2.41% NZD/EUR 1.6516 0.0130 0.79% 1.1 What is the direct exchange rate quotation, from a South African perspective, between the rand and the euro? Explain. [2] 1.2 What is the price quotation, from a Chinese perspective, between the JPY and CHN? [2] 1.3 Calculate the missing values in the table above. [10] 1.4 How much CNH is required to buy 5 million Japanese Yen today? [3] 1.5 Calculate the indirect exchange rate, from an American perspective, between the New Zealand Dollar and the U.S. dollar. [4] 1.6 How much GBP was required to buy ZAR100000 yesterday? [4] 1.7 By what percentage did the CNH appreciate/depreciate against the JPY today? [5] Question 2 [15 marks] Complete the cross rates table (matrix) below by using only the exchange rates given in the matrix (i.e., do not use or refer to the exchange rates in question 1). CNH USD EUR SGD GBP 1 CNH = 1 0.1537 0.1129 1 USD = 1 1.3637 1 EUR = 7.5976 1 1 SGD = 1 1 GBP = 1 Question 3 [15 marks] The following are exchange rate bid and ask rates for several currencies as quoted by NFB BANK to any interested client. Note that the notation is in the format specified in class (i.e. the base currency is second) Forex bid and offer quotes by NFB BANK BID OFFER JPY/ZAR 7.1950 7.9550 EUR/USD 0.8516 0.8519 USD/CHF 1.0991 1.0999 USD/JPY 0.00911 0.00927 Suppose a company called KNOWIT Ltd contacted NFB BANK to obtain some buying and selling exchange rates. Answer the following questions in detail (i.e., explain your answers and include currency codes in front of your answers, since the answer is incomplete without that). 3.1 What are bid rates that NFB BANK is quoting for the JPY? Explain in detail what this means. [4] 3.2 How much USD will KNOWIT Ltd have to pay to buy CHF250000 from NFB BANK? [3] 3.3 How much EUR will NFB BANK receive if it sells USD15 million to KNOWIT Ltd? [2] 3.4 How much JPY will NFB BANK receive if it sells ZAR15 million to KNOWIT Ltd? [2] 3.5 What is the mid-rate for the ZAR/JPY quotation? (Tip: Double check the notation for this question) [2] 3.6 By how many basis points does the ZAR/JPY bid and offer rate, as quoted by NFB BANK, differ? (Tip: Double check the notation for this question) [2]