--%>
Assignment Help - homework help

Trading

A CD/$ bank trader is presently quoting a small figure bid-ask of 35-40, while rest of the market is trading at the CD1.3436-CD1.3441.  Specify what all is implied about trader’s beliefs by his prices?

E

Expert

Verified

Trader should think that Canadian dollar is declining against U.S. dollar and thus he is trying in order to decrease his inventory of Canadian dollars through discouraging purchases of the CD by willing to buy $ only at CD1.3435/$1.00 and also providing to sell from inventory at the price which is slightly lower in comparison to the market price of CD1.3440/$1.00.

   Related Questions in Financial Accounting

  • Q : Link financial accounting and

    is there a link between financial accounting and programmed decision

    		•
  • Q : Imports and exports of U.S Give some

    Give some remark over the given statement: “As imports of the U.S. is more than its exports, it is essential for U.S. to import the capital from foreign countries in order to finance its current account deficits.”

    		•
  • Q : Types of international banking offices

    List different types of the international banking offices.

    		•
  • Q : Explain Due Diligence Due Diligence: 1.

    Due Diligence:1. General: Assess of prudence, accountability, and diligence which is expected from, and ordinarily exercised by, a reasonable and prudent person beneath the situations.

  • Q : What is Liability Management Liability

    Liability Management: The procedure by which financial institutions balance outstanding liabilities, like deposits, CDs, and so on, with suitable liquidity reserves. Banks and other lenders employ liability management to decrease liquidity risks and u

    		•
  • Q : Workings and nature of the financial

    Assume that you are really interested in investing in the shares of Nokia Corporation of Finland that is a world leader in the wireless communication. However, before making the investment decision, you might like to learn about company. Take a look of the website of

    		•
  • Q : Maintaining multiple manufacturing

    Write down disadvantages and advantages of maintaining the multiple manufacturing sites as the hedge against exchange rate exposure.

    		•
  • Q : Prepare the journal entry to record the

    On December 31, 20x1, the Kat Co. purchase a group of four assets for a total cost of $1,000,000. An independent appraiser assesses the fair value of each asset asfollows: Asset Fair Value Land $350,000 Building 600,000 Equipment 200,000 Fixtures 150,000 Prepare the journal entry t

    		•
  • Q : Uniform costing benefits The uniform

    The uniform costing executed? It is beneficial for an organization?

    		•
  • Q : Double taxation Specify some of the

    Specify some of the methods taxing authorities utilize to remove or diminish evil of double taxation?

    		•