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b) Mr Azfar called his dealer and asked for quotation the spot, 1 month and 3 month. The dealer responded the following 1 month forward
b) Mr Azfar called his dealer and asked for quotation the spot, 1 month and 3 month. The dealer responded the following 1 month forward 3 month forward RM41250/75/USD 40/60 50/35 USD19050/70/ 60/75 65/40 i) Calculate the forward outright rates for RM/USD for 1 month and 3 month. (4 marks) ii) Determine the annualized premium / discount for the forward rates in (i). (3 marks) iii) In your opinion, provide an expectation for the price of RM per f spot in Malaysia
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