Omni Advisors, an international pension fund manager, plans to sell equities denominated in Swiss francs (CHF) and purchase an equivalent amount of equities denominated in South African rands (ZAR). Omni will realize net proceeds of 3 million CHF at the end of 30 days and wants to eliminate the risk that the ZAR will appreciate relative to the CHF during this 30-day period. The following table shows current exchange rates between the ZAR, CHF, and the U.S. dollar (USD).

Currency Exchange Rates

ZAR/USD

CHF/USD

Maturity

Bid

Ask

Bid

Ask

Spot

6.2711

6.2819

1.5312

1.5388

30-day

6.2568

6.2671

1.5256

1.5315

90-day

6.2134

6.2230

1.5088

1.5145

Calculate the following:

• The CHF/ZAR cross-currency rate Omni would use in valuing the Swiss equity portfolio. (Round your answer to 9 decimal places.)
• The current value of Omnis Swiss equity portfolio in ZAR. (Round your answer to 2 decimal places.)
• The annualized forward premium or discount at which the ZAR is trading versus the CHF. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

Cross-currency rate
Current value of Omnis Swiss equity portfolio in ZAR
pick one: annualized forward premium or annualized forward discount		%