Question
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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Crypto Spotlight Series The Sandbox
Authors: Nott U.r. Keys
1st Edition
979-8854247702
