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Based on this information below do we Buy or Sell Euro Forward? Which Option to buy? Payment Amount:400,000.00 Spot rate: $1.220/ Forward Information: 6-month forward
Based on this information below do we Buy or Sell Euro Forward?
Which Option to buy?
Payment Amount:400,000.00
Spot rate: $1.220/
Forward Information: 6-month forward rate is $1.240/
Option Information:
- Strike Price: $1.23/
- Premium: 1% of the current spot rate (for one foreign currency)
Money market information | US | Greece |
Borrowing rate, APR, compounded semiannually | 4.0% | 5.0% |
Investing (lending) rate, APR, compounded semiannually | 3.0% | 4.5% |
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