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