Q 1 to Q 7 combined: You have just started working as a trader for Credit Suisse in New York. The following are quotes for Japanese (JPY) against the dollar (USD) for spot, 1 month forward, 3 months forward, 6 months forward and one year forward. All the rates are quoted as the number of JPY per USD.

Spot exchange rate: the Bid rate is 128.02 JPY per USD the Ask Rate is128.06 JPY per USD

Forward points: 1 month forward 12 - 09 3 months forward 46 - 41 6 months forward 102 - 92 1 year forward 204 - 184

Q 5 & Q 6 combined (this continues on from all the information in Q 1): A trader at a different bank calls you up and asks you for a two-way (bid and ask rate) for an outright forward for delivery one year from now.

Q 5: What bid rate do you give? Q 6: What ask rate do you give?