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Andreas Broszlo just started as an analyst for Credit Suisse in Zurich, Switzerland. He receives the following quotes for Swiss francs against the dollar for
Andreas Broszlo just started as an analyst for Credit Suisse in Zurich, Switzerland. He receives the following quotes for Swiss francs against the dollar for spot, one-month forward, 3-months forward, and 6-month forward:
| Spot Exchange Rate: | |
| Bid Rate | SF 1.2575/$ |
| Ask Rate | SF 1.2585/$ |
| 3-months forward | -26 to -18 |
| 5-months forward | -32 50 -19 |
a. Calculate outright quotes for bid and ask for 3-month and 6-month forward rates.
b. Compute the percentage spreads for 3-month and 6-month forward rates.
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