Question
A company approaches an FX dealer for a forward quote on the USD/CHF with a three-month (90-day) delivery. The spot rate is USD/CHF1.2000. Assume the
A company approaches an FX dealer for a forward quote on the USD/CHF with a three-month (90-day) delivery. The spot rate is USD/CHF1.2000. Assume the three-month eurodollar interest rate is 4.00% per annum and the three-month euroswiss franc interest rate is 6.00% per annum. Calculate the forward points for the dealer?
12
49
59
50
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
978-1259024979
