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How much should a forward contract cost in EUR/PLN currency with an expiry date of 90 days under the below mentioned data. Provide both for
How much should a forward contract cost in EUR/PLN currency with an expiry date of 90 days under the below mentioned data. Provide both for bid and offer forward prices.
Bid rate = 4,5180 EUR / PLN - spot price, sale offer
Offer rate = 4,5205 EUR / PLN - spot price, bid
Credit rate for PLN per annum = 1,10%
Deposit rate for PLN per annum = 0,90%
Credit rate for EUR per annum = 0,65%
Deposit rate for EUR on an annual basis = 0,45%
Remember about the base for currencies (PLN 365 & EUR 360).
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