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P4. Barclays Bank, as one of largest dealers in the foreign exchange markets, stands ready to be on the opposite side of every trade. The
P4. Barclays Bank, as one of largest dealers in the foreign exchange markets, stands ready to be on the opposite side of every trade. The following information was given from the current market. Currency Interest Rate of Borrowing Interest Rate of Lending Dollar 5% 4.5% Euro 5.5% 5% Exchange Rate Bid Ask Spot Rate 1.42 $/ 1.45 $/ Forward Rate 1.413 $/ 1.443 $/ Requirement: Please set Barclays' suitable forward Bid and Ask price, respectively. (15 Marks)
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