ABN Amro’s Mid Rate is AED INR 12.80. Desired Spread is INR 0.04 (per Dirham Transaction).
Standard Chartered has quoted a Spot Rate of USD INR 43.3040/43.4010
Standard Chartered’s Forward Rates are:
1 m Forward – 100/120.
2 m Forward – 139/201.
Citibank Quotes (Spot) EUR INR 51.2010/52.5050.
a) Calculate Bid-Ask Rate for ABN Amro.
b) Write forward quotes for 1 month and 2 months for Standard Chartered in Outright form.
c) Calculate forward rate for 1 month and 10 days for Standard Chartered.
d) Calculate cross rate $/€ from Standard Chartered and Citibank.
e) Is Rupee weakening?
[Ans.: (a) AED INR 12.78/12.82, (b) 1 month 43.3140/43.4130, 2 month 43.3179/43.4211, (c) Rupees per $ 43.3153/43.4157 for 1 m 10 days, (d) 1.1797/1.2123 ($ per €)]
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