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show all the calculations. The forward quotes in point form are as follows for the currency pairs AUD/USD and AUD/CHF as of September 21, 2020.
show all the calculations.
The forward quotes in point form are as follows for the currency pairs AUD/USD and AUD/CHF as of September 21, 2020. Use this information to answer parts d) through g) Currency Pair AUD/USD AUD/CHF 1-month forward points Bid Ask 0.5600 0.7200 -5.4000 -5.2400 3-month forward points Bid Ask 1.7500 2.0500 -15.9000 -15.5200 1-year forward points Bid Ask 3.5800 5.0800 -69.5000 -67.5000 d) Calculate the outright forward rates for the currency pair AUD/CHF. (3 marks) e) Calculate the outright forward rates for the currency pair AUD/USD. (3 marks) f) Calculate the forward premium (discount) for the currency pairs based on the rates calculated in d) and e) above. Please use spot rates from the chart provided at the top of the question. (6 marks) g) Do the forward rates imply a strengthening or weakening of the CHF with respect to the Australian dollar? Explain your logic. (5 marks) The forward quotes in point form are as follows for the currency pairs AUD/USD and AUD/CHF as of September 21, 2020. Use this information to answer parts d) through g) Currency Pair AUD/USD AUD/CHF 1-month forward points Bid Ask 0.5600 0.7200 -5.4000 -5.2400 3-month forward points Bid Ask 1.7500 2.0500 -15.9000 -15.5200 1-year forward points Bid Ask 3.5800 5.0800 -69.5000 -67.5000 d) Calculate the outright forward rates for the currency pair AUD/CHF. (3 marks) e) Calculate the outright forward rates for the currency pair AUD/USD. (3 marks) f) Calculate the forward premium (discount) for the currency pairs based on the rates calculated in d) and e) above. Please use spot rates from the chart provided at the top of the question. (6 marks) g) Do the forward rates imply a strengthening or weakening of the CHF with respect to the Australian dollar? Explain your logicStep by Step Solution
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