Standard charter bank in hong kong needs to fund a us, Ask an Expert

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Standard Charter Bank in Hong Kong needs to fund a U.S. dollar loan to customer. It obtains the following quotations: three-month Eurodollar rate 6 ¼--6 1/8, three-month Euro-yen rate 7 3/4- 7 9/16, yen/$ spot 110.25-110.75, three-month forward points 0.049-0.052. Which is the cheapest way of funding the loan? Explain carefully how it would be done and show your calculations.

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