InvestAlpha Inc, an international pension fund, plans to sell equities denominated in Poland Zloty (PLN) and purchase an equivalent amount of equities denominated in Oman Real (OMR) Omni will realize net proceeds of 5 million PLN at the end of 60 days and wants to eliminate the risk that the OMR will appreciate relative to the PLN during this 60-day period.

1. Calculate the OMR/PLN cross-currency rate for bid and ask 60-day forward.

2. Calculate the current value of InventAlphas Poland equity portfolio in OMR.

3. Calculate the annualized forward premium or discount at which the OMR is trading versus the PLN based on 60-day forward. S (PLN/$) = 3.9122 3.9134 F30day (PLN/$) = 3.9110 3.9125 F60day (PLN/$) = 3.9095 3.9115 S (OMR/$) = 0.3880 0.3895 F30day (OMR/$) = 0.3894 0.3908 F60day (OMR/$) = 0.3920 0.3937