Dealer lent 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 at what rate will you deal?
4. If currently 6 months Kibor is 12% and 7 months Kibor is 12.50%, after 4month 6 Month Kibor is 11.25%, and 7 months Kibor is 10.50%. How much FRA buyer & seller pay/receive.

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