question archive Problem 1 • The central bank of South Korea announces every business day at 9:00 a
Problem 1 • The central bank of South Korea announces every business day at 9:00 a
Subject:FinancePrice: Bought3
Problem 1 • The central bank of South Korea announces every business day at 9:00 a.m. a fixed rate at which it will buy or sell US dollars throughout the trading day. No such commitments are made, however, against other major trading currencies. . On August 9, 1990, the following rates were set at 9:00 a.m.: US$1 = KRW 715. Quotes for the cross-rates US$/¥ indicated 150. Thirty minutes later, the Japanese yen had appreciated to ¥ 148 for US$1. • a. Explain how the treasurer of Samsung, one of the leading South Korean industrial conglomerates, could profit from the new situation at 9:30 a.m.
