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secondary 3 | E Maths
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Pls help! Thanks!
Date Posted: 1 year ago
Views: 201
for this kind of question i think u need to see the previous questions like part a
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Based just on the given graph without any other information, and assuming Caleb has to BUY Euros with Singapore dollars in order to make a FX deposit.
No, I will not advise Caleb to do so. Two thirds of the month (1st to 17th, 28th to 31st) the rate was stuck in a narrow range of 1.595 to 1.605, meaning there is no voliatility, hence not much chance for Caleb to gain (or make a loss) from a Euro deposit.
For Caleb to benefit from his deposit, the rate has to break the 1.605 ceiling. Caleb would have to be very fortunate to be able to start his deposit on the 23rd (buy Euro at the lowest rate). Furthermore, the rate was only below 1.595 for a third of the month, meaning that the Euro was not robust against the Singapore dollar, hence Caleb would more likely lose money in such a FX deposit.
Hope this gives you an idea. Regards
No, I will not advise Caleb to do so. Two thirds of the month (1st to 17th, 28th to 31st) the rate was stuck in a narrow range of 1.595 to 1.605, meaning there is no voliatility, hence not much chance for Caleb to gain (or make a loss) from a Euro deposit.
For Caleb to benefit from his deposit, the rate has to break the 1.605 ceiling. Caleb would have to be very fortunate to be able to start his deposit on the 23rd (buy Euro at the lowest rate). Furthermore, the rate was only below 1.595 for a third of the month, meaning that the Euro was not robust against the Singapore dollar, hence Caleb would more likely lose money in such a FX deposit.
Hope this gives you an idea. Regards
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