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1. The spot rate for Norwegian kroner is NOK/USD 6.1463 and thesix-monthforward rate is NOK/USD 6.1919. From the perspective of a U.S. investor, what is the annualized forward premium or discount of the Norwegian kroner relative to the U.S. dollar?
2. Suppose that Deutsche Bank is offering the following spot quotations involving the U.S. dollar (USD), Norwegian krone (NOK), and Brazilian real (BRL):
NOK/USD 6.1463 BRL/USD 2.4108 NOK/BRL 2.5500
How can you profit from this situation and how much in profits could you earn if you had access to USD 1,000,000 for arbitrage purposes?
3. JP Morgan Chase has published the following spot exchange rate bid and asked rate quotes on the Brazilian real: BRL/USD 2.4108 – 2.4120. How many Brazilian real (BRL) would you receive if you sold USD 80,000?
4. You just received an invoice for payment of 62,000 Swiss francs (CHF). If the spot rate is USD/CHF 1.1207, how many U.S. dollars would you have to pay to eliminate this debt?
5. If the spot rate is USD/GBP 1.6518, how many British pounds (GBP) would you receive if you had USD 80,000 to exchange?
6. The spot rate for Swiss francs is USD/CHF 1.1207 and thethree-monthforward rate is USD/CHF 1.1260. From the perspective of a U.S. investor, what is the annualized forward premium or discount of the Swiss franc relative to the U.S. dollar?
7. JP Morgan Chase has published the following spot exchange rate bid and asked rate quotes on the Euro: USD/EUR 1.3678 – 1.3680. What would it cost you (in USD) to purchase 200,000 Euros?
8. If the spot rate is NOK/USD 6.1463, how many Norwegian krone (NOK) would you receive if you had USD 175,000 to exchange?
9. You just received an invoice for payment of 354,000 Norwegian krone (NOK). If the spot rate is NOK/USD 6.1463, how many U.S. dollars would you have to pay to eliminate this debt?
10. What should be the spot cross rate between the Norwegian krone (NOK) and the Euro (EUR) if the NOK/USD spot rate is 6.1463 and the USD/EUR spot rate is 1.3678?
11. What should be the spot cross rate between the Norwegian krone (NOK) and the Brazilian real (BRL) if the NOK/USD spot rate is 6.1463 and the BRL/USD spot rate is 2.4108?