Question
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF). Spot $ 0.8216 30-day forward $ 0.8532 90-day forward
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF).
| Spot | $ | 0.8216 |
| 30-day forward | $ | 0.8532 |
| 90-day forward | $ | 0.8554 |
| 180-day forward | $ | 0.8601 |
a. Was the Swiss franc selling at a discount or premium in the forward market?
-
Premium
-
Discount
b. 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.)
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
