Question
Thefollowingoutrightquotations aregivenfortheCanadiandollar: Bid (C$/$) Ask(C$/$) Spotrate 1.2340 1.2350 Onemothforward 1.2345 1.2365 Threemothsforward 1.2367 1.2382 Sixmonthsforward 1.2382 1.2397 Assumeyouresideinthe UnitedStates.CalculateforwardquotesfortheCanadiandollaras an annual percentage premium or discount.
- Thefollowingoutrightquotations aregivenfortheCanadiandollar:
| Bid (C$/$) | Ask(C$/$) | |
| Spotrate | 1.2340 | 1.2350 |
| Onemothforward | 1.2345 | 1.2365 |
| Threemothsforward | 1.2367 | 1.2382 |
| Sixmonthsforward | 1.2382 | 1.2397 |
Assumeyouresideinthe UnitedStates.CalculateforwardquotesfortheCanadiandollaras an annual percentage premium or discount. Would a foreign exchange trader inCanada get a different answer if asked to calculate the annual percentage premium ordiscounton theU.S. dollarfor eachforward rate?Why?
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Managerial Decision Modeling Business Analytics With Spreadsheet
Authors: Nagraj Balakrishnan, Barry Render, Ralph Stair, Charles Munson
4th Edition
1501515101, 978-1501515101
