Dealerlent PKR 15,000,000 at 11.50% for 11 months (335 days) and forward rate (effective rate) for 4*11 (215 days) is 12.35%

Required:

1.What is your current borrowing rate for 4 months

2.How could you hedge your position

3.If the market is quoting 11.50/75 for 4vs11 (4*11) at what rate will you deal.

4.If currently 6 month Kibor is 12% and 7 month Kibor is 12.50%, after 4month 6 Month Kibor is 11.25%, and7 month Kibor is 10.50%. How much FRA buyer & seller pay/receive.

What would be overall approximate profit & loss position of dealer after 4 Month