global finance 666
You have following information on exchange rate:
Date |
USD/GBP |
HKD/USD |
Jan 2010 |
1.78 |
7.7 |
Mar 2010 |
1.90 |
7.75 |
For the period of 01/2010 to 03/2010, which of the following statement is correct?
A. GBP appreciates against USD and HKD depreciates against USD |
B. GBP depreciates against USD and HKD appreciates against USD |
C. USD appreciate against both GBP and HKD |
D. None of the above |
Assume that there is no transaction cost and you observe the following quotation:
1. USD/HKD: 0.1250
2. JPY/USD: 116.20
3. HKD/JPY: 0.062
If you have HKD1,000,000 and you try triangular arbitrage, which is the correct way of trade:
A. HKD==>USD==>JPY |
B. HKD==> à USD==> à JPY==> à HKD |
C. HKD==> à JPY ==>à USD |
D. HKD à==> JPY ==>à USD ==>à HKD |