Question
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF). Spot $ 0.8224 30-day forward $ 0.8548 90-day forward
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF).
| Spot | $ | 0.8224 |
| 30-day forward | $ | 0.8548 |
| 90-day forward | $ | 0.8562 |
| 180-day forward | $ | 0.8609 |
|
| ||
What was the 30-day forward premium (or discount) percentage? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
c. What was the 90-day forward premium (or discount) percentage? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
d. Suppose you executed a 90-day forward contract to exchange 320,000 Swiss francs into U.S. dollars. How many dollars would you get 90 days hence?
e. Assume a Swiss bank entered into a 180-day forward contract with Bankers Trust to buy $320,000. How many francs will the Swiss bank deliver in six months to get the U.S. dollars? (Round your answer to 2 decimal places.)
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The Illiterate Executive An Executives Handbook For Mastering Financial Acumen
Authors: Blair Cook
1st Edition
1460289935, 978-1460289938
