Seminar 2.
1. If the Japanese yen–U.S. dollar exchange rate is ¥104.30/$, and it takes 25.15 Thai baths to
purchase 1 dollar, what is the yen price of the baht?
2. Alumina Limited of Australia has called Mitsubishi UFJ Financial Group to get its opinion
about the Japanese yen–Australian dollar exchange rate. The current rate is ¥67.72/A$, and
Mitsubishi thinks the Australian dollar will weaken by 5% over the next year. What is
Mitsubishi UFJ’s forecast of the future exchange rate?
3. Please, go to Refinitiv or another financial web site and calculate cross-currency rate for
MXN/CAD. Calculate the cross rate and figure out if there is an arbitrage opportunity for
theoretical price of MXN/CAD equals to 0,090?
4. Go to www.fxstreet.com (or tradingview.com), find the “Rates and Charts” and “Live
Charts” and “Chart Tools” and plot the exchange rate of the dollar vs. the euro with a
“candle stick” high-low chart at 5-minute intervals for one day, daily intervals for one
month, and weekly intervals for one year. Find on the chart some trends and observe the
dynamics. What are the drivers of FX movements?
5. How large are the bid–ask spreads in the interbank spot market? What is their purpose? Go
to tradingview.com web site and find bid and ask price of EUR/USD. Calculate the spread
in percentage points.
6. You know the following quotations on the market. Is there arbitrage opportunity?
GBP/EUR = 1.4650
USD/EUR = 0.9153
GBP/USD = 1.5593