Suppose you bought 2 calls and 1 put option (a strap) each with a contract size of 125,000. If the put has a strike price of $1.25/ and a premium of $0.015, and the calls have a strike of $1.25/e with a premium of $0.02 each, what is your overall net position (net profit) if the spot rate rises The dollar-euro exchange rate is $1.25 = €1.00 and the dollar-yen exchange rate is ¥100 = $1.00. If the euro interest rate is 5.15% and the yen interest rate is 4.95%, what is the euro-yen cross rate?
Suppose a bank corporate customer has €2,335,000 and plans to trade for Japanese yen to complete a capital budgeting project in Tokyo. The dollar-euro exchange rate is quoted as $1.60 = €1.00 with a $ interest rate of 4.12% and a € interest rate of 3.87%. If the dollar-yen exchange rate is quoted at $1.00 = ¥120 . with a ¥ interest rate of 1.173%, how many yen will the customer get?
You are an American based corporate treasurer with $17,745,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 an American interest rate of 3.345% and the dollar-pound exchange rate is quoted at $2.00 = £1.00 with a British interest rate of 4.283%. If a bank quotes you a cross rate of £1.00 = €1.20 how can you make money?