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4. Considering the following quotations: $/ $/E Spot 1.1215-1345 1.2656-2765 X/$ 121.86-121.46 73-62 Fwd 30 days 50-75 45-20 Fwd 90 days 115-130 78-53 97-56 Fwd
4. Considering the following quotations: $/ $/E Spot 1.1215-1345 1.2656-2765 X/$ 121.86-121.46 73-62 Fwd 30 days 50-75 45-20 Fwd 90 days 115-130 78-53 97-56 Fwd 180 days 130-175 135-100 175-125 If interest rates in $ are 2%, in 3%, in 1.5% and in 2.5%, calculate outright fwd rates (all) and explain if the are arbitrage possibilities considering the $ and the X for one month. 4. Considering the following quotations: $/ $/E Spot 1.1215-1345 1.2656-2765 X/$ 121.86-121.46 73-62 Fwd 30 days 50-75 45-20 Fwd 90 days 115-130 78-53 97-56 Fwd 180 days 130-175 135-100 175-125 If interest rates in $ are 2%, in 3%, in 1.5% and in 2.5%, calculate outright fwd rates (all) and explain if the are arbitrage possibilities considering the $ and the X for one month
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