CoursHeroTranscribedText: Holdings, Inc. LBEX-LL 3356531 You wish to buy CHF forward one year against the USD. Euro USD rates = 5.0"% Euro CHF rates = 4.0% spot = 1.52 USD /CHE CONFIDENTIAL TREATMENT REQUESTED BY BARCLAYS SOURCE: LEHMAN LIVE 2. Forward points = -0.0154 Forward rate = 1.5046 Since you earned the interest rate differential, you will pay the forward points by receiving fewer CHF at the forward rate. Points = 1.5200 * (4.0 -5.0) * (365/360) * 100 Points = -154 points 1.5200 - 0.0154 = 1.5046 Mario N BROTHERS |08 3)