Question
Using the following exchange rates between US$ and Australian $, calculate annual forward premium/discount. Period Exchange Rate ($/) Spot 1.2200 2 month 1.2216 4 months
Using the following exchange rates between US$ and Australian $, calculate annual forward premium/discount.
| Period | Exchange Rate ($/) |
| Spot | 1.2200 |
| 2 month | 1.2216 |
| 4 months | 1.2219 |
| 12 months | 1.2261 |
The 12-month forward premium/discount is what %? (Please keep the sign and at least two decimal numbers.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Analysis Of Financial Data
Authors: Gary Koop
1st Edition
0470013214, 978-0470013212
