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1a A Global Forex trader gives the following quotes for the Swiss Franc spot, one month, three months and six months to US based treasurer

1a

A Global Forex trader gives the following quotes for the Swiss Franc spot, one month, three months and six months to US based treasurer

USD 1.0356/60 4/6 9/8 14/11

Calculate outright price for Spot, One Month, Three- Month, Six Months

b

If the trader wished to buy 10,000 Swiss francs for one and three months forward, how much would he pay in dollars?

c

If he wished to purchase 20,000 US dollars three-Month Forward Contract and Six-Month Forward Contract, how much would he have to pay in Swiss Francs?

d

In case, the Swiss Francs are being bought. What will be the premium or discount for the One Month Contract rate and Three-Month contract rate in annual percentage terms?

e

Calculate the Bid- Ask Spread percentage for Spot, One Month, Three Months and Six Months the above details.

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