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/CHF1.2200-50. The dealer
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/CHF1.2200-50. The dealer needs to calculate the forward points. Assume the three-month eurodollar bid and offer interest rates are 4.00% and 4.40% p.a. and the three-month euroswiss franc interest rates are 5.00% and 5.50% per annum, respectively. Calculate bid forward points
A) 18
B) 30
C) 33
D) 45
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
