Question
QUESTION 3 (25 Marks) Calculate the one year forward rate if euro spot rate is $1.80 and if one year forward rate has a forward
QUESTION 3 (25 Marks)
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Calculate the one year forward rate if euro spot rate is $1.80 and if one year forward rate has a forward premium of 4 percent.
(5 Marks)
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Calculate the one year forward rate if CAD spot rate is $0.80 and if one year forward rate has a forward premium of 4 percent.
(5 Marks)
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If the AUDs one year forward rate is quoted at $0.90 and the AUDs spot rate is quoted at $0.85, find the forward premium.
(5 Marks)
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Refer the information given below, and find the forward rate with justification whether its premium or discount.
| Type of exchange rate | Value | Maturity | Forward rate premium/discount for euro |
| Spot rate | $1.5500 |
|
|
| 30-day forward rate | $1.5490 | 30 days |
|
| 90-day forward rate | $1.5410 | 90 days |
|
| 180-day forward rate | $1.5397 | 180 days |
|
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Passive Income Stacking Handbook How To Reach Financial Freedom Faster Regardless Of Your Age Or Situation
Authors: Mark Walters
1st Edition
0578530171, 978-0578530178
