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that is all the information provided Question 4 (13 marks) Use the following spot and forward quotations for the US Dollars (U SD) / Swiss

that is all the information provided

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Question 4 (13 marks) Use the following spot and forward quotations for the US Dollars (U SD) / Swiss Franc (CI-IF) to answer the following questions: (CHF 1 8 USD _) Period Bid Ask spot 0.93 12 - 0.93 l 6 1 month 8 - 7 3 months 25 - 24 6 months 54 - 52 9 months 79 - 76 12 months 103 - 100 4A__ (4A. 5 marks) 4B. Based on the mid-rate (mid-point of bid and ask prices), what is the forward premium (or discount) for the CI-IF trading 1-month forward? (43. 4 marks) 4C. Based on the mid-rate, what is the forward premium (or discount) for US Dollar trading 9_- month forward? (4 C. 4 marks) General Formula: Forward premium = (Forward - Spot) / (Spot) x (360 / days)

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