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Problem 21-1 Spot and forward rates [LO21-2] The Wall Streef Joumal reported the following spot and forward rates for the Swiss franc (S/SF) Spot 30-day
Problem 21-1 Spot and forward rates [LO21-2] The Wall Streef Joumal reported the following spot and forward rates for the Swiss franc (S/SF) Spot 30-day forward 90-day torward 180-day forward S 8222 S 8544 S 8560 a. Was the Swiss franc selling at a discount or premium in the forward market? Discount O Premium b. What was the 30-day forward premium (or discount)? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 30-day forward premiumidiscount6 c. What was the 90-day forward premium (or discount)? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 90-day forward premium/discount d. Suppose you executed a 90-day forward contract to exchange 300,000 Smss francs into U.S. dollars. How many dollars would you get 90 days hence? Dollars for Swiss francs e. Assume a Swiss bank entered into a 180-day forward contract with Bankers Trust to buy $300,000. How many francs ill the Swiss bank deliver in six months to get the U.S. dollars? (Round your answer to 2 decimal places.) Swiss francs for dollars SF
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