Numerical of Spot/Forward/TOM/Overnight RATES

USD-INR 
spot and forward rate 
 USD - 65.60/62 
O/N - 1/2 
TOM - 2/3 
2 weeks - 7/8 
1 month - 15/17 
2 months - 31/33 
3 months - 47/50 
6 months - 95/100

Q1. What is the rate at which AD can buy spot dollars from market?
 a. 65.59
 b. 65.60 
 c. 65.61 
 d. 65.62

Ans: B 

Q2. 2. What is the rate at which AD may sell spot dollars in the market? 
a. 65.59 
b. 65.60 
c. 65.61 
d. 65.62 

Ans: D

Q3.AD purchases USD 100,000 in a merchant transaction and sells them in the market at 65.63 per dollar. What is the profit that AD earns in the transaction?  


Ans: Purchase Rate for AD(Now AD is customer) will be Selling RATE that is 65.62(Buying Rate) and Selling Rate will be 65.63. Hence Profit will be  USD .01 means Rs. 10000/- 

Q4.  AD sold 1 month forward USD 500,000 to a merchant and then covered up his position by buying in the market one month forward dollars at 45.82 per dollar(it is wrong in question it will be 65.82/-). What is the profit/loss in the transaction?

Ans. One Month forward selling Rate will be 65.62+.17= 65.77/- and One month buying rate according to question Rs.65.82 hence Selling Rate-buying Rate= Margin , that will be -.03. Hence loss will be of Rs. 15000/- 

Q5. What rate the AD will quote for bill buying for a bill maturing in 60 days drawn in USD?

Ans: 65.91/-