1/7.8030 *( 1+ 10% * 2)* R2 = 1+7% * 2
R2 =( 1+7% * 2)* 7.8030/( 1+ 10% * 2)= 7.4 129
7.8020 *( 1+7% * 2)/r 1 =( 1+ 10% * 2)
r 1 = 7.8020 *( 1+7% * 2)/( 1+ 10% * 2)= 7.4 1 19
The exchange rate of USD /HKD for two years is 7.4 1 19/29.
2. Buying price of forward swap = 7.8000 * (1+7%/4)/(1+5%/4) = 7.83852.
Selling price of forward swap = 7.8050 * (1+7%/4)/(1+5%/4) = 7.84354.
3.DEM/HKD =(7.8085/ 1.8428)/(7.8095/ 1.842 1)= 4.2373/95
Buy Hong Kong dollars in Deutsche Mark, that is, the buying price of Deutsche Mark is 4.2373.
4. GBP/AUD = (1.6125/0.7130)/(1.6135/0.7120) = 2.26.
Buy Australian dollars in pounds, that is, the selling price of the bank in pounds is 2.2662.
5. GBP/CHF = (1.6125 *1.5080)/(1.6135 */.5090) = 2.40.
If you sell 1 ten thousand pounds, you can get100000 * 2.4317 = 2431700 Swiss francs.