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Omni Advisors, an international pension fund manager, plans to sell equities denominated in Swiss francs ( CHF ) and purchase an equivalent amount of equities
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 million at the end of days and wants to eliminate the risk that the ZAR will appreciate relative to the CHF during this day period. The following exhibit shows current exchange rates between the ZAR, CHF and the US dollar USD
tableCurrency Exchange RatesMaturityBid,Ask,Bid,AskSpotday,day,
Calculate the following:
The CHFZAR crosscurrency rate Omni would use in valuing the Swiss equity portfolio. Round your answer to decimal places.
The current value of Omni's Swiss equity portfolio in ZAR. Round your answer to decimal places.
The annualized forward premium or discount at which the ZAR is trading versus the CHFNegative amount should be indicated by a minus sign. Round your answer to decimal places.
tableCrosscurrency rate,,Current value of Omni's Swiss equity portfolio in ZAR,,Annualized forward discount,,
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