Mathematical Modeling in Economics and Finance

 QuestionsWhat is the difference between the retail or client market and the wholesale or interbank market for foreign exchange?Who are the market participants in the foreign exchange market?
What is meant by a currency trading at a discount or at a premium in the forward market?
Why does most interbank currency trading worldwide involve the U. S. dollar?
Banks find it necessary to accommodate their clients’ needs to buy or sell FX forward, in many instances for hedging purposes. How can the bank eliminate the currency exposure it has created for itself by accommodating a client’s forward transaction?
A CD/$ bank trader is currently quoting a small figure bid-ask of 35-40 when the rest of the market is trading at CD1. 3436-CD1. 3441. What is implied about the trader’s beliefs by his prices?
What is triangular arbitrage? What is a condition that will give rise to a triangular arbitrage opportunity?ProblemsUsing the American term quotes from Exhibit 5., calculate a cross-rate matrix for the euro, Swiss franc, Japanese yen, and the British pound so that the resulting triangular matrix is similar to the portion above the diagonal in Exhibit 5.
Ignoring transaction costs, does Doug Bernard have an arbitrage opportunity based on these quotes? If there is an arbitrage opportunity, what steps would he take to make an arbitrage profit, and how would he profit if he has $1,000,000 available for this purpose.
Assume you are a trader with Deutsche Bank. From the quote screen on your computer terminal, you notice that Dresdner Bank is quoting €0. 7627/$1. 00 and Credit Suisse is offering SF1. 1806/$1. 00. You learn that UBS is making a direct market between the Swiss franc and the euro, with a current €/SF quote of  6395.Sales using each of the following:a) A 3 – month moving average
b) A 6 – month weighted average using 0. 1, 0. 1, 0. 1, 0. 2, 0. 2, and 0. 3 with the heaviest weights applied to the most recent months.
c) Exponential smoothing using an = 0. 3 and a September forecast of 18
d) A trend projection With the data given, which method would allow you to forecast next March sales?
Approximate price: $22
We value our customers and so we ensure that what we do is 100% original..

With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.