Exercise 3
Question Description
1 page or so discussion
I’m working on a Economics exercise and need a sample draft to help me understand better.
Accessing Futures Quotes
Goto a web site that provides quotations for currency futures. Determinethe prevailing futures price of the main foreign currency for yourbusiness. Go to a web site that provides exchange rate quotations anddetermine the prevailing spot rate. What is the discount or premium ofthe futures price? (see equation below)
Futures price website:
https://www.tradingview.com/markets/futures/quotes-currencies/
https://www.barchart.com/futures/currencies
Currency (spot rate) website:
https://www1.oanda.com/currency/converter/
Makesure all quotes are made relative to the U.S. Dollar. Calculate thepremium (positive result) or discount (negative result):
(Futures price Spot rate)/Spot rate
Monitoring Central Bank Intervention
- How can your business be affected if the Fed attempts to strengthen the dollar in the foreign exchange market?
- If the Fed decides to weaken the dollar, how will your business be affected?
- How can indirect central bank intervention affect your business even if there is no impact on exchange rates?
I have attached the business I have
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