global finance 666

You have following information on exchange rate:

Date Save your time - order a paper! Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines Order Paper Now	USD/GBP	HKD/USD
Jan 2010	1.78	7.7
Mar 2010	1.90	7.75

For the period of 01/2010 to 03/2010, which of the following statement is correct?

A. GBP appreciates against USD and HKD depreciates against USD

B. GBP depreciates against USD and HKD appreciates against USD

C. USD appreciate against both GBP and HKD

D. None of the above

Assume that there is no transaction cost and you observe the following quotation:
1. USD/HKD: 0.1250
2. JPY/USD: 116.20
3. HKD/JPY: 0.062
If you have HKD1,000,000 and you try triangular arbitrage, which is the correct way of trade:

A. HKD==>USD==>JPY

B. HKD==> à USD==> à JPY==> à HKD

C. HKD==> à JPY ==>à USD

D. HKD à==> JPY ==>à USD ==>à HKD

 

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