currency 1-4

Interbank market has the market making mechanism

Value date in currency futures is -

The market participant is expected to submit the trade contract to bank within 30 days of booking the forward contract

Riskless profit objective can be achieved by-------------

An Indian Importer wants to go for an equal hedge position with an exposure of $200000; will be going -

The underlying currency pairs for deriving prices of GBPUSD are USDINR are 1.6295/1.6300 and 45.5025/50 respectively find out the prices of GBPINR

The underlying currency pairs for deriving prices of EURUSD are USDINR are 1.5760/65 and 52.4525/50 respectively find out the prices of EURINR

Merchants are price givers and banks are price takers , in majority of merchant market----------

What is meant by 'Depreciation' of currency?

The Swiss Franc closely resembles the patterns of the Euro, but lacks its liquidity

Long in one currency and short in the same currency with different maturity is known as

As a trader you believe GBPUSD will move from 1.63 to 1.68 in next 2 months. Which of the following would you do to execute this view using currency futures contract of GBPINR and USDINR?

Spot USD/INR is 47 . Future is trading at 49 . If differential interest rate between these two currency is 10% . What is time to expiry for USD/INR in years approximately?

Derivative prices are derived from a change in the price of –

USD/INR contract with one month expiry at 48.8025 . Spot 48.2015. A trader initiate a short position in USD/INR futures. On expiry USD/INR close at 48.2225. He will ___

What influences spreads?

Which term best describes USD currency?

If one year interest rate is 3% in US and 8% in India. If current USDINR spot rate is 45, which of the following could be closest to the 3 month future rate of USDINR?

Two commonly used Swaps are -

The forward rate is a function of the spot rate and the interest rate differential between the two currencies, adjusted for ¬_____.

21. On 1st Jan, 2007 a student enrolled for MBA-USA October 2007 test and he needs to make his payment of USD 2000 on 15th June, 2007. The USD/INR rate has been fixed at 42.30 when he got enrolled. June currency futures contract on 1st Jan was trading at 42.70. On 15th June when he has to make the payment the spot price was 45.90 and price of USDINR futures contract was 46.24. What position he has to take in future and how much profit/loss he makes?

If settlement happens on the trade date, the settlement price is called as cash rate and if happens one day after trade date, the price is called as tom rate

A GDP growth rate higher than expected may mean relative strengthening of the currency of that country

USDINR currency pair will be impacted by economic variables -

A student in economics belivies that USD will strengthen and intiates a buy position in USDINR this is an example for -------

In September 2008, a trader in currency future expect spread to widen . He buys December future USD/INR @49 and sells October future @ 48.80 . After 30 days the October @ 49 and december future @49.10. The trader square his position . He will ___

Who among the following would buy USDINR futures?

The following are contracts found on an OTC platform -

Mention the positions to be taken for the arbitrage trading if the following rates are given-Spot rate: Rs 47.635. Forward rate: 47.8550. Futures rate: 47.875

In quote EUR/USD 1.4692/94. the _________

One year interest rates in US and India are say 3% and 10% respectively and the spot rate of USD in India is Rs. 45. Then one month USD/INR futures fair value is -----

Any resident Indian desiring to book a forward contract need not have an underlying trade contract which could establish exposure to foreign currency.

The ISO code of Swiss Franc

USD/INR currency future are traded at 42.55 ,the nearest quotes ____

The exchange rate is a price - the number of units of one nation’s currency that must be surrendered in order to acquire one unit of another nation’s currency

One year interest rate is 4% in US and 1% in UK. If current GBPUSD spot rate is 1.65, which of the following could be closest to one year future rate of GBPUSD?

There is a large body of empirical evidence which suggests that exchange rate volatility has an adverse impact on foreign trade.

Suppose the spot exchange rate is at Rs 48.0000. Forward rate is at Rs 48.1150 and the futures price is at Rs 48. 4250. What will be the profit or gain made if an arbitrageur observes this opportunity?

The underlying currency pairs for deriving prices of EURUSD are EURINR are 1.75/1.76 and 71.2535/71.2540 respectively find out the prices of USDINR

Quote prices of USDJPY are USDINR are 86.85/87 and 45.5025/50 respectively find out the Quotation for 100 JPY in INR

A person has invested USD 100,000 in US equities with a view of appreciation of US stock market. In next one year, his investments in US equities appreciated in value to USD120,000. The investor decided to sell off his portfolio and repatriate the capital and profits to India. At the time of investing abroad the exchange rate was 44.5 and at the time of converting USD back into INR, he received an exchange rate of 46. How much is the return on investment in USD and in INR respectively?

The tick size for the USDINR contract is -

If Dollar / Rupee has moved from 42 to 41.75 , the $ has ___________

Long in one currency and short in another currency with same maturity is known as ------------

An active stock market investor decides to invest abroad USD 100,000 for a period of six months in the S&P 500 Index when USD/INR was at 43.20. After six months, as per his Anticipation, the market wherein he has invested has appreciated and now his investment stands at USD 110,000. If current USD/INR exchange rate stands at 39.75, What is his return in Dollar & Rupee terms?

At any moment, the exchange rates of major currencies tend to be --------------

Which of the following in not correct quote in Future market

Bid and offers USD/INR 48.60-48.65 are quote for buying & selling of one unit of ______

Taking position in futures opposite to that in cash market to take advantage of mispricing is

Derivatives are –