Bloomberg Finance Assingment Help With Solution
Question 1: bid-ask spreads
a. How wide are the percentage bid-asked spreads for those four currency pairs, at various contract maturities?
b. Do the mean/median spreads widen with contract maturity? Are the spread generally higher for some of the currencies? Can you venture an explanation for the pattern?
Hint 1: Build a third table with volatility estimates for the 4 exchange rates. To that effect, you (i) should either use the average (or median) percentage “high minus low” of the relevant exchange rate (aka the “realized volatility” of that rate) or use the more conventional standard deviation of the daily currency rates of return and
then (ii) can see whether the percentage spreads are correlated with volatility.
Hint 2: Build a fourth table with volume estimates for the 4 exchange rates and see whether the percentage spreads are correlated with spreads (which are, as we discussed in class, a measure of liquidity).
Question 2: Covered Interest Rate Parity
Over the last six years, has covered interest rate parity held?
1. As a rough first pass, you could intuitively use the relevant LIBOR and midpoints of the daily Forex rate bid-ask quotes to check that, each day in your sample period and for each currency pair (for all three forward delivery dates), the forward premia/discounts were approximately equal to the relevant interest rate differentials:
2. For the EUR/USD forward rates, please also proceed more formally. You should check whether the EUR/USD forward rates are in line with the spot rates, after adjusting for the relevant interest rate differentials. Do not forget to take into account bid-ask spreads for exchange rates (Bid vs. Asked) as well as interest rates (LIBOR on the ask side vs. LIBID or another deposit rate).
Hint: verify whether there is any day in your 11-year sample when either of the following inequalities do not hold:
How it Works
How It works ?
Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
Features
Features for Assignment Help
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
Related Services
- Physics Assignment Help
- Chemistry Assignment Help
- Engineering Assignment Help
- Psychology Assignment Help
- Online exam Help
- Marketing Assignment Help
- Arts Assignment Help
- Sociology Assignment Help
- Project Management Assignment
- Case Study Help
- Nursing Assignment Help
- Research Assignment Help
- Operations Management Assignment help
- Accounting Assignment Help
- Biology Assignment Help
- Mathematics Assignment Help
- English Assignment Help
- Business Plan Help
- Essay Writing Help
- Human Resource Assignment Help
- Accounting Homework Help
- Computer Science Assignment Help
- Finance Assignment Help
- Economics Assignment Help
- Statistics Homework Help
- Management Assignment Help
- Strategy Management Assignment Help
- Auditing Assignment Help
- Information Management Assignment Help
- Online Assignment Writing help
- Best Assignment Help
- Humanities Assignment help
Question 3: Yen carry trades
a. Over the last 11 years, could you have made money from carry trades, using the yen as the funding currency (borrowing at LIBOR) and the US dollar as the target currency (depositing at USD LIBID or some other measure of the USD interbank deposit rate)?
Hint: Assume that you are continuously doing carry trades during the past 9 years, using 1-month or 3-month loans that you roll over. Describe the instruments you plan on using to implement your carry trades, your roll-over strategy, gains/losses, etc.
b. What would the risks have been? Please show your work.
Hint: For example, what would have happened to your bet in Fall 2008? More generally, what does the distribution of your carry-trade gains/losses look like – like a normal distribution, or something else? If the latter, what is your interpretation?
Product Code :Fin204
To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)
You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.