Words of Wisdom:

"Ice cream comes from cows." - Wokao40682


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AFW 3331 International Banking and Finance
Internal Assignment Task for Semester 1, 2012
This is an individual assignment task which carries 30% of the marks for this unit.
The Task:
You are given USD10,000,000 (US$10 mil) in your bank account. Your bank account number is your
student ID number. You are allowed to use the money to trade in any three currencies of your choice
from the list of twenty currencies provided below. You can start using the money from 14th March 2012
until 20th April 2012. You have 6 trading weeks. At the end of 6 weeks of trading you are required to
return the remaining USD in your account and submit a detailed report on your trading activities that led
to the consumption of the USD given.
1) On 14th March 2012, once you have chosen the three currencies of your choice to trade, use
www.oanda.com to track the exchange rates of the currencies. This web site provides the
historical trading records of the currencies up to 5 years retrospectively. You may decide to use
the US$10mil to buy any portfolio combination of the three currencies. E.g. 30% each in two
types of currencies and another 40% in the third currency, or 50% each in only two types of
currencies, or 100% of one type of currency. On the first trading week you are allowed to only
buy the currencies.
2) You can buy or sell the combinations of your three currencies once in every week. You may set
the trading day as every Wednesday (as it is the best of the mid-week day). Therefore you will
trade on 21st, 28th of March, 4th, 11th and 18th of April 2012. Between each week of your trading
you should gather all relevant information on the relevant currency to strategize your next
move. As you are involved in short – term exchange rate determination, you should look out for
economic, political and other relevant news and reports on the country of each currency that
you are trading. You must maintain a diary of your strategies to compile a report at...


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