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The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF): Spot............................................ $0.9432 30-day forward.......................... $0.9481 90-day forward.......................... $0.9531 180-day

The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF):

Spot............................................ $0.9432

30-day forward.......................... $0.9481

90-day forward.......................... $0.9531

180-day forward........................ $0.9594

a. Was the Swiss franc selling at a discount or premium in the forward market?

b. What was the 30-day forward premium (or discount)?

c. What was the 90-day forward premium (or discount)?

d. Suppose you executed a 90-day forward contract to exchange 100,000 Swiss francs into U.S. dollars. How many dollars would you get 90 days hence?

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