Financial Market

Running head: FINANCIAL MARKET
Financial Market
Name of the Student:
Name of the University:
Author’s Note:

FINANCIAL MARKET1
Table of Contents
Question 1..................................................................................................................................2
References..................................................................................................................................5

FINANCIAL MARKET2
Date Rate Trading amount Profit/ loss
Buy 10/9/2019 1.4575 25000000 USD
36437500 AUD
-
Sell 11/9/2019 0.6862 25003431 USD 3431 USD
Buy 12/9/2019 1.4556 36395388 AUD
Sell 13/9/2019 0.6887 25067509 USD 64078 USD
Total 67,509 USD
Question 1
Summary of the Above part and use the below table to showing a minimum of 2
transactions and a maximum of 4 transactions with 100 million USD – AUD which
means use 25 million USD for 4 trades.
Key Summary: From the above analysis done above we can well understand that the
AUD/USD exchange rate will be stable and be appreciating over a period of time as the
interest rate differentials between the two economies reduces. In order to well capitalize the
same we would be incorporating various aspects of the above given factors like the changing
economic and political conditions that were in the field of Brexit and Volatility in the interest
rate. It was well important to capture the difference associated with the these factors and for
the same a trade will be initiated where the investment will be done in the AUD currency
from the USD currency conversion in order to capture the changes in the exchange rate in the
form of profitability.