Question
Bid/Ask on Dollar/Euro Forwards. Use the following spot and forward bid-ask rates for the U.S. dollar/euro (US$/) from December 10, 2010, to answer the following
Bid/Ask on Dollar/Euro Forwards. Use the following spot and forward bid-ask rates for the U.S. dollar/euro
(US$/)
from December 10, 2010, to answer the following questions:
a. What is the mid-rate for each maturity?
b. What is the annual forward premium for all maturities?
(Click on the
icon to import the table into a spreadsheet.)
| Period | Bid Rate | Ask Rate |
|
| spot | 1.3211 | 1.3212 | |
| 1 month | 1.3209 | 1.3210 | |
| 2 months | 1.3207 | 1.3208 | |
| 3 months | 1.3204 | 1.3206 | |
| 6 months | 1.3196 | 1.3198 | |
| 12 months | 1.3175 | 1.3180 | |
| 24 months | 1.3130 | 1.3162 |
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Financial Management Of Financial Institutions
Authors: George H Hempel
1st Edition
0133159604, 9780133159608
