Foreign Exchange Spot Market Solution Spot transaction Market

Foreign Exchange Spot Market Solution : Spot transaction Market Taker - Spot rate EUR/USD Bid/Ask 1. 2805/1. 2810 EUR is the Base Currency/ USD is the Variable Currency 1/ You would like to Sell 1. 000 USD - Which price (Bid/Ask) do you choose to deal? Ask 1, 2810 – You are selling the Variable Currency. - What will be the countervalue in EUR? 1, 000 USD / 1. 2810 = 780, 640. 12 EUR 2/ You would like to Buy 1. 000 EUR - Wich price (Bid/Ask) do you choose to deal? Ask 1, 2810 - You are buying the Base Currency - What will be the countervalue in USD? 1, 000 EUR * 1. 2810 = 1, 281, 000 USD IMAFA - FX SPOT EXERCISE CORRECTION 1 1

Foreign Exchange Spot Market Solution : Spot transaction Market Taker - Spot rate EUR/USD Bid/Ask 1. 2805/1. 2810 EUR is the Base Currency/ USD is the Variable Currency 3/ You would like to Buy 1. 000 USD - Which price (Bid/Ask) do you choose to deal? Bid 1, 2805 – You are buying the Variable Currency - What will be the countervalue in EUR? 1, 000 USD / 1. 2805 = 780, 944. 94 EUR 4/ You would like to Sell 1. 000 EUR - Which price (Bid/Ask) do you choose to deal? Bid 1, 2805 – You are selling the Base Currency - What will be the countervalue in USD? 1, 000 EUR * 1. 2805 = 1, 280, 500 USD BBA EDHEC International Treasury Management 2

Foreign Exchange Spot Market Solution : Spot transaction Flows Market Taker- Spot rate EUR/USD Bid/Ask 1. 2805/10 EUR is the Base Currency/ USD is the Variable Currency 1/ You would like to Sell 1. 000 USD - Outflow in USD - Inflow in EUR - 1, 000 USD Sale + 780, 640. 12 EUR Purchase 2/ You would like to Buy 1. 000 EUR - Inflow in EUR – Outflow in USD + 1, 000 EUR Purchase - 1, 281, 000 USD Sale 3/ You would like to Buy 1. 000 USD - Inflow in USD – Outflow in EUR + 1, 000 USD Purchase - 780, 944. 94 EUR Sale 4/ You would like to Sell 1. 000 EUR – Outflow in EUR – Inflow in USD - 1, 000 EUR Sale + 1, 280, 500 USD Purchase BBA EDHEC International Treasury Management 3