4) A foreign exchange trader gives the following quotes for the Belgian francs spot, one-month, three month and six month to a US based treasurer. $0.02476/78 2/4 7/6 12/9

(a) Calculate the outright quotes for one, three and six months forward.

(b) If the treasurer wishes to buy Belgian francs three month forward, how much would the treasurer pay in Dollars?

(c) If the treasurer wishes to purchase USD one month forward, how much would the treasurer have to pay in Belgian francs?

(d) Assuming that the Belgian francs are being bought, what is the premium or discount for one, three and six month forward rates in annual percentage terms?

5) Discuss forex spot and forward in Islamic Finance.

Note: The Euro has replaced French franc and Belgian franc on 1st

January 2002.