Your customer requests you to book a sale forward exchange contract for US $ 2 million delivery 3rd month. The quotes are: Spot US $ 1= ?48.050/0.060; 1month margin = 0.0850/0.0900; 2 month margin = 0.2650/0.2700; 3 month margin = 0.5300/0.5350.You are required to make an exchange profit of 0.125%. Ignore telex charges and brokerage.

Syllabus for the paper: Section A : Investment decisions 25% 1. Investment Decisions, Project Planning and Control 2. Evaluation of Risky Proposals for Investment Decisions 3. Leasing Decisions Section B : Financial Markets and Institutions 20% 4. Institutions in Financial Markets 5. Instruments in Financial Markets 6. Capital Markets 7. Commodity Exchange Section C : security Analysis and portfolio Management 25% 8. Security Analysis & Portfolio Management Section D : Financial risk Management 30% 9. Financial Risks & Management 10. Financial Derivatives – Instruments for Risk... Show more

Syllabus for the paper:

Section A : Investment decisions 25%
1. Investment Decisions, Project Planning and Control
2. Evaluation of Risky Proposals for Investment Decisions
3. Leasing Decisions
Section B : Financial Markets and Institutions 20%
4. Institutions in Financial Markets
5. Instruments in Financial Markets
6. Capital Markets
7. Commodity Exchange
Section C : security Analysis and portfolio Management 25%
8. Security Analysis & Portfolio Management
Section D : Financial risk Management 30%
9. Financial Risks & Management
10. Financial Derivatives – Instruments for Risk Management
11. Financial Risk Management in International Operations

Related Test: CMA Intermediate Exam: Financial Management

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