Assume that You are risk manager at ABC Investment. ABC Investment lends 100.000.000 USD for 330 day and borrow 80.000.000 EUR to finance a new project for 180 day. Nowadays investors expect high volatility in FX and want to hedge itself. Find forward rate using exchange and interest rates below USD/TL: ( Buy usd) 5,8725 / 5,9850 ( sell usd) EURO/TL: ( Buy EURO) 6,6700 / 6,7250 ( sell EURO) USD Interest rate: ( Buy USD ) 4,50 / 5,00 ( Sell Usd) EURO Interest rate: ( buy usd ) 6,25/ 7,50 (sell usd) TL/IBOR: (buy) 12,25/14,00 ( sell) ( Exchange rate )

from information above, we can only use only Exchange rates for Buy or sell ones ( example if company makes export usd we should consider 5.9850 exhange rate ) not both. we should deciced the correct one depending on ABC Invesment firms position.