Foreign Exchange Spot Market Solution Spot transaction Market

Foreign Exchange Spot Market Solution : Spot transaction Market Taker - Spot rate GBP/USD Bid/Ask 1. 4670/1. 4675 GBP 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, 4675 – You are selling the Variable Currency. - What will be the countervalue in GBP? - 1, 000 USD / 1. 4675 = + 681, 431. 01 GBP 2/ You would like to Buy 1. 000 GBP - Wich price (Bid/Ask) do you choose to deal? Ask 1, 4675 - You are buying the Base Currency - What will be the countervalue in USD? + 1, 000 GBP * 1. 4675 = - 1, 467, 500. 00 USD IMAFA - FX SPOT EXERCISE CORRECTION 2 1

Foreign Exchange Spot Market Solution : Spot transaction Market Taker - Spot rate GBP/USD Bid/Ask 1. 4670/1. 4675 GBP 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, 4670 – You are buying the Variable Currency - What will be the countervalue in GBP? + 1, 000 USD / 1. 4670 = - 681, 663. 26 GBP 4/ You would like to Sell 1. 000 GBP - Which price (Bid/Ask) do you choose to deal? Bid 1, 4670 – You are selling the Base Currency - What will be the countervalue in USD? 1, 000 GBP * 1. 4670 = 1, 467, 000. 00 USD BBA EDHEC International Treasury Management 2

Foreign Exchange Spot Market Solution : Spot transaction Flows Market Taker- Spot rate GBP/USD Bid/Ask 1. 2805/10 GBP is the Base Currency/ USD is the Variable Currency 1/ You would like to Sell 1. 000 USD - Outflow in USD - Inflow in GBP - 1, 000 USD Sale + 681, 431. 01 GBP Purchase 2/ You would like to Buy 1. 000 GBP - Inflow in GBP – Outflow in USD + 1, 000 GBP Purchase - 1, 467, 500. 00 USD Sale 3/ You would like to Buy 1. 000 USD - Inflow in USD – Outflow in GBP + 1, 000 USD Purchase - 681, 663. 26 GBP Sale 4/ You would like to Sell 1. 000 GBP – Outflow in GBP – Inflow in USD - 1, 000 GBP Sale + 1, 467, 000. 00 USD Purchase BBA EDHEC International Treasury Management 3