The bank quoted a fixation for the exchange rate for 16 November 2022 in Q7....
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The bank quoted a fixation for the exchange rate for 16 November 2022 in Q7. 90. Amount to be fixed $500,000 Exchange rate today 7.68 Days ? Interest rate in GTQ 6.0% Interest rate in USD 0.3% a. Do you think it is a reasonable rate offered by the bank? Explain why. b. Suppose the interest rate in quetzales for the bank is 3.5%, what would be the forward price under this assumption? C. You set to buy $500,000 at Q7.90/USD in December. At maturity the real rate is at Q7. 80/USD. What would be your result of that fixation? Fo - Soe"-rf)7 The bank quoted a fixation for the exchange rate for 16 November 2022 in Q7. 90. Amount to be fixed $500,000 Exchange rate today 7.68 Days ? Interest rate in GTQ 6.0% Interest rate in USD 0.3% a. Do you think it is a reasonable rate offered by the bank? Explain why. b. Suppose the interest rate in quetzales for the bank is 3.5%, what would be the forward price under this assumption? C. You set to buy $500,000 at Q7.90/USD in December. At maturity the real rate is at Q7. 80/USD. What would be your result of that fixation? Fo - Soe"-rf)7
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