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(B). Mr. Salim, a Qatari citizen visited a commercial bank in Doha and asked one of a bank employee about the spot rate and 30
(B). Mr. Salim, a Qatari citizen visited a commercial bank in Doha and asked one of a bank employee about the spot rate and 30 days, 60 days and 90 days forward rates for QAR/USD. The bank employee responded with the following rates: QAR 3.65376/95 7/ 9 9 /12 15/11 Requirement: i. Determine 60 days forward rate and calculate forward rate premium or discount for 60 days (Use selling spot and forward prices and take QAR as home currency). ii. If Mr. Salim wished to buy spot 6,000 USD, how much would he pay in QAR? iii. If Mr. Salim wished to sell spot 20,000 QAR, how much would he receive in USD? (6 Marks)
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