On 3rd April, 2025, Royal Bank quotes the following: Bid Ask Spot Exchange Rate (US$ 1) 84.2525 85.5945 2 months' swap points 60 80 3 months' swap…
CA Final · Advanced Financial Management · PYQS · September 2025
On 3rd April, 2025, Royal Bank quotes the following: Bid Ask Spot Exchange Rate (US$ 1) 84.2525 85.5945 2 months' swap points 60 80 3 months' swap points 150 178 In a spot transaction, delivery is made after two days. Assume spot date as 5th April, 2025 and 1 swap point = 0.0001. Calculation up to 4 decimal places. From the information given above, choose the correct answer to the following question No. 10 to 12:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
Bid – 105 and Ask – 129
Topics: Foreign Exchange Exposure and Risk Management
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