Professor Ted Azarmi's Forum

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1
Dear Prof.,

I trust this email finds you well.

Please find attached the summary of the case.

Thank you so much :)
2
Dear Professor,

Please find attached my summary for the Axel Springer case study.

Thank you.

Regards,
Lim Wei Meen
3
Triangular Arbitrage / Triangular Arbitrage HoMe WoRk -ibrahim Shahaltough-
« Last post by Ibrahim on April 23, 2018, 11:00:32 pm »
Quoted Rate in London:-                               Tokyo Quoted rate:- 1 Euro = 128 Yen
$1=107.88 Yen
$1=0.85 Euro

Implied rate = 107.88/0.85= 126.91

1 Euro = 126.91 Yen

The Euro is more expensive in Tokyo than in London

1.Sell 1,000,000 € in Tokyo:
1,000,000 € x 128 Yen/€ = 128,000,000 Yen

2.Convert Yen into $ in London:
128,000,000 Yen / 107.88 Yen/$ = 1,186,503.52$

3.convert $ into € in London:-
1,186,503.52$ x 0.85€/$ = 1,008,527.99 €

Arbitrage profit: 1,008,527.99 € - 1,000,000 € = 8,527.992  €

Ibrahim jalal Ibrahim Shahaltough
4
1.Japanese bonds pay 4% interest :Rf = 0.04

2.US Treasury notes pay 3% interest :Rd =0.03

3.Japanese Yen/dollar sport rate is 106 yen/$ :S= 106 Yen/$

4.Japanese Yen / dollar forward rate is 103 yen/$ : F=103 Yen/$

Forward Discount:
103/106 = 0.97 < 1
-the forward rate is lower than the spot rate -       foward discount

Does the interest parity hold?
1) 103/106 (=?) (1+0.04)/(1+0.03)
     0.97 = 1.04/1.03 = 1.01
- no, the Japanese rate ist too high and the USD too low

3) Borrow at the cheap US interest rate  3%
  10,000,000 x 1.03 = 10,300,000 next year

4) Exchange the US $ to Yen
   10,000,000 x 106 = 1,060,000,000


5) Loan 1,060,000,000 Yen at 4%
   1,060,000,000 x 1.04 =  1,102,400,000 Yen

6) Buy US $ one-forward to cover your loan
    10,300,000 x 103 = 1,060,900,000 Yen next year

- Arbitrage Profit
      1,102,400,000 Yen - 1,060,900,000 Yen =
      41,500,000 Yen


Abdullah Nidal Abdulqader Abdullah

5
Triangular Arbitrage / Triangular Arbitage HW
« Last post by AbdullahAbdullah on April 23, 2018, 02:58:03 pm »
$-Base spot market quotes in London
     1$=113,28 Yen
   1$= 0,93
Quoted rate

Tokyo spot market
1 Euro= 121,77 Yen

Implied rate
1€  = 113,28 yen/ 0,9€ = 125.80yen
Euro is cheaper in Tokyo because 125.80 >121.77 Yen
1.Sell 1.000.000 Euros in Tokyo
1000.000€ x 121.77 yen/€ = 121.770.000 yen
2. Convert 121.770.000 yen into $ in London
121.770.000 yen /113.28 yen/$ = 1.074.947,03
3. Convert 1.074.947,03$ into € in London
$1.074.947,03x 0.9€/$ =967.452,331
4. Arbitragre profit:
967.452,331€ - 1000.0000 = -----

Abdullah Abdullah
6
Hedging F/X Transaction Exposure / VictorSeilerHW
« Last post by vseiler on April 23, 2018, 01:21:32 pm »
Dear Mr.Azarmi, please have a look at this file

Victor Seiler
7
Extracting Data From Financial Statments in Excel / HW2. Fin. Project
« Last post by Zara Israyelyan on April 21, 2018, 02:09:27 pm »
Dear Mr. Azarmi,

attached you will find my HW 2.

Have a nice weekend!

Best Regards,
Zara Israyelyan
8
Dear Mr. Azarmi,

attached you can find the homework on Foreign Exchange Markets and the World Currency.

Kind regards,

Melanie Zemke
9
8. Porsche Case / Porsche Case - Conclusions - Lorena Barron,199179 (MIBIM SS18)
« Last post by Loalba92 on April 21, 2018, 09:55:23 am »
Dear Prof.,

Please find attached the conclusions for the Porsche case :)

Best regards,
Lorena Barron
10
8. Porsche Case / Porsche Case - Summary - Lorena Barron,199179 (MIBIM SS18)
« Last post by Loalba92 on April 21, 2018, 09:54:02 am »
Dear Prof.,

Please find attached the summary of the Porsches case.

Best regards, :)

Lorena Barron
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