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The Wall Street Journal reported the following spot and forward rates for the Swiss franc ( $ / SF ) . Spot $ 0 .
The Wall Street Journal reported the following spot and forward rates for the Swiss franc $SF
Spot $
day forward $
day forward $
day forward $
a Was the Swiss franc selling at a discount or premium in the forward market?
multiple choice
Discount
Premium Correct
b What was the day forward premium or discount percentage? Do not round intermediate calculations. Input your answer as a percent rounded to decimal places.
c What was the day forward premium or discount percentage? Do not round intermediate calculations. Input your answer as a percent rounded to decimal places.
d Suppose you executed a day forward contract to exchange Swiss francs into US dollars. How many dollars would you get days hence?
e Assume a Swiss bank entered into a day forward contract with Bankers Trust to buy $ How many francs will the Swiss bank deliver in six months to get the US dollars? Round your answer to decimal places.
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