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can you please show your work, I will upvote Assume the U.S. Dollar government bond yield curve is flat at 0% per year and the
can you please show your work, I will upvote
Assume the U.S. Dollar government bond yield curve is flat at 0% per year and the Swiss Franc government bond yield curve is flat at -1.0% per year (negative 1.0%).
The spot exchange rate is $1.10/franc.
Assume your firm has a contract to buy 500 million Swiss franc in one year, at a contract price of $1.10/franc.
What is the value - in dollars - (to your firm) of this contract? (please make it clear if this contract has positive or negative value)
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