Question
The /$ spot exchange rate is $1.50/ and the 120 day forward exchange rate is 1.45/. If the $ and interest rates are 2.446% and
The /$ spot exchange rate is $1.50/ and the 120 day forward exchange rate is 1.45/. If the $ and interest rates are 2.446% and 1.892% respectively, what is the forward premium or discount?
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Consider the following spot and forward rate quotations for the Swiss franc: S($/SFr) = 0.85 F1($/SFr) = 0.86 F2($/SFr) = 0.87 F3($/SFr) =0.88 If the SFr interest rate is .934% and the $ interest rate is 1.137%, calculate the 3-month forward premium or discount in American terms. Assume 30-360 pricing convention:
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Suppose you observe a spot exchange rate of $2.0671/ and a 3 mo. forward rate of $2.0317/. If interest rates are 5.375 percent APR in the U.S. and 2.148 percent APR in the U.K., what is the no-arbitrage 1-year forward rate?
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Investments An Introduction
Authors: Herbert B. Mayo
13th Edition
0357127951, 978-0357127957
