Question
A year ago you took a one-year long Sf forward position with a contract amount of A$= $1000. The 1-year forward rate was 1.15 Sf/$.
A year ago you took a one-year long Sf forward position with a contract amount of A$= $1000. The 1-year forward rate was 1.15 Sf/$. With 5 months left until delivery time, the spot is now 1.20 Sf/$, the one-year USD interest rate is 5% and the one-year Swiss interest rate is 4%. What is MTM of the long position?
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School Finance And Business Management Optimizing Fiscal Facility And Human Resources
Authors: Craig A. Schilling, Daniel R. Tomal
2nd Edition
1475844026, 978-1475844023
