Question
Suppose the direct 90 day forward quote for the Danish kroner in Frankfurt is given to you as EUR 0.2943 0.2957 / DKK and spot
Suppose the direct 90 day forward quote for the Danish kroner in Frankfurt is given to you as EUR 0.2943 0.2957 / DKK and spot rate as EUR 0.2921 0.2948 / DKK. Based on the bid or ask rates, which currency is at a forward-premium with respect to the other currency? How much is this forward-premium? [Hint: Use either bid or ask rates]
a. Please type formula here:
b. Please provide the reasoning for your answer:
c. Calculate the forward-premium here:
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Day Trading Strategies And Risk Management
Authors: Richard N. Williams
1st Edition
979-8863610528
