Question
Consider the following quotes on the Israeli New Shekel (ILS) and the U.S. Dollar (USD): Spot exchange rate: ILS3.05-3.13/USD 3-months: ILS3.19-3.20/USD 6-months: ILS3.31-3.45/USD 9-months: ILS3.61-3.89/USD
Consider the following quotes on the Israeli New Shekel (ILS) and the U.S. Dollar (USD):
Spot exchange rate: ILS3.05-3.13/USD
3-months: ILS3.19-3.20/USD
6-months: ILS3.31-3.45/USD
9-months: ILS3.61-3.89/USD
Suppose that you are a U.S.-based trader and would like to enter a forward-forward forex swap into Israeli New Shekel worth USD1,000,000 in three months' time for six months. Calculate and explain the cash flows associated with this swap transaction.
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
