Borrowing Decision Sums
(1) Calculate interest payable in each of the currency for million.
Currency |
Spot |
6 month Forward |
Interest Rates |
|||
INR
USD INR AUD INR CAD INR |
51.00 54.20 48.00 |
51.20 54.40 48.30 |
51.60 54.60 48.60 |
51.80 54.80 48.80 |
8.00% 4.70% 5.20% 4.10% |
8.20% 5.00% 5.50% 4.30% |
(Ans.: INR USD AUD CAD Borrow CAD
41,000 41,078 38,875 38,525)
(2) Calculate interest payable in each of the currency for 2 million.
Currency |
Spot |
3 month Forward |
Interest Rates |
|||
INR
USD INR CHF INR EUR INR |
52.50 47.00 68.20 |
53.00 47.30 68.40 |
53.10 47.50 68.50 |
53.30 47.80 68.70 |
9.00% 4.50% 5.00% 5.30% |
9.20% 4.70% 5.20% 5.50% |
(Ans.: INR USD CHF EUR Borrow EUR
46,000 54,334 60,485 42,364)
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