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4 bank dealer is faced with the following quotes SVE Bid 1.5958 Offer 1.5963 DMS Bid 13880 13885 Bid 88.3300 88.3800 98 2800188 10150 3.9550-

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4 bank dealer is faced with the following quotes SVE Bid 1.5958 Offer 1.5963 DMS Bid 13880 13885 Bid 88.3300 88.3800 98 2800188 10150 3.9550- 806 I month 2 month 3 month 691.0950610010 | 18 3500 6850 184 16 26 64 29 269265 -143? ?? | 2.7000 2.4150 471 464 /2 month 153 4.0550 786 What is the forward rate when: a) A customer wants to sell six month forward sterling () against six-month b) A customer wants to buy three month forward D-marks (DM) against three month e) A customer wants to buy dollars (S) against D-marks (DM) for delivery in two forward deutschmarks (DM). marks) (6 forward yen () (6 marks) months and 10 days (8 marks) n Four

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