Question
Suppose Bank of Nova Scotia (a Canadian bank) quotes spot and 90- day forward rates of $0.7159-61 and $0.6445-50 for one Canadian Dollar (CAD) respectively.
Suppose Bank of Nova Scotia (a Canadian bank) quotes spot and 90- day forward rates of $0.7159-61 and $0.6445-50 for one Canadian Dollar (CAD) respectively.
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(a) What are the outright 90-day forward rates that Bank of Nova Scotia is quoting?
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(b) What is the forward discount or premium associated with buying 90-day Canadian dollar?
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(c) Compute the percentage bid-ask spreads on spot and forward Canadian dollar.
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An Evaluation Of The Benefits And Value Of Libraries
Authors: Nyström, Viveca , Sjögren, Linnéa
1st Edition
1843346869,1780632932
