Summer Special Limited Time 60% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: 8w52ceb345

A bank customer expecting to pay its Brazilian supplier BRL 100 million asks Alpha Bank...

GARP 2016-FRR Full Course Access
GARP 2016-FRR View All Questions

A bank customer expecting to pay its Brazilian supplier BRL 100 million asks Alpha Bank to buy Australian dollars and sell Brazilian reals. Alpha bank does not hold Brazilian reals so it asks for a quote to buy Brazilian reals in the market. The market rate is 100. The bank quotes a selling rate of 101 to its customer, sells the reals, and receives AUD 1,010,000. To perform foreign exchange matched position trading, the banks should

A.

Immediately buy the real at the market rate of 100 and pay AUD 1,000,000.

B.

Immediately buy the real above the market rate of 105 and pay AUD 1,050,050.

C.

Immediately sell the real at the market rate of 100 and receive AUD 1,000,000.

D.

Immediately sell the real above the market rate of 105 and receive AUD 1,050,050.

2016-FRR PDF/Engine
  • Printable Format
  • Value of Money
  • 100% Pass Assurance
  • Verified Answers
  • Researched by Industry Experts
  • Based on Real Exams Scenarios
  • 100% Real Questions
buy now 2016-FRR pdf
Get 60% Discount on All Products, Use Coupon: "8w52ceb345"
Next
As an example of the balance sheet effect, if rates rise, Delta Bank can expect:
A corporate bond was trading with 2%probability of default and 60% loss given default.
Previous