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The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF). Spot 30-day forward 90-day forward 180-day forward $0.8206 $0.8512
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF). Spot 30-day forward 90-day forward 180-day forward $0.8206 $0.8512 $0.8544 $0.8591 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.) 30-day forward premium/discount 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.) 90-day forward premium/discount d. Suppose you executed a 90-day forward contract to exchange 140,000 Swiss francs into U.S. dollars. How many dollars would you get 90 days hence? Dollars for Swiss francs e. Assume a Swiss bank entered into a 180-day forward contract with Bankers Trust to buy $140,000. How many francs will the Swiss bank deliver in six months to get the U.S. dollars? (Round your answer to 2 decimal places.) Swiss francs for dollars SF
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