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Suppose the spot rate and the 90-day forward rate on the South African rand are 13.180 and 13.365 respectively, answer the following requirements. Is the
Suppose the spot rate and the 90-day forward rate on the South African rand are 13.180 and 13.365 respectively, answer the following requirements.
- Is the dollar at a forward discount or premium on the rand?
- What is the annual percentage discount or premium on rand? (Enter your answer as a positive value. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
- If you have no other information about the two currencies, what is your best guess about the spot rate on the rand three months hence? (Round your answer to 3 decimal places.)
- Suppose that you expect to receive 100,000 rand in three months. How many dollars is this likely to be worth? (Round your answer to 2 decimal places.)
| A. | The Dollar is at a: | ||
| B. | Annual Percentage Discount | % | |
| C. | Spot Rate | ZAR | |
| D. | Amount |
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