Question
You are given the following information for the spot and one month forward and 3 months forward. spot 1 month forward 3 month forwad US
You are given the following information for the spot and one month forward and 3 months forward. spot 1 month forward 3 month forwad US (dollars) 1.5200-1.5210 0.32-0.27 cpm 0.89-0.84 cpm Canadian (dollar) 1.8630-1.8640 0.30-0.20 cpm 0.90-0.80 cpm Netherland (Guilders) 4.05 1 4.06 1 2 3 - 1 7 cpm 6 3 - 6 1 cpm 4 4 8 8 4 4 Belgiam (frank) 72.20 - 72.30 10 - 20 cdis 45 - 55 cdis Denmark (kronner) 13.01 - 13.02 4.4 - 5 5 cdis 18 3 - 19 3 cdis 8 8 4 Germany ( DM) 3.061 - 3.071 2-1 1 cpm 51 - 5 cpm 2 2 2 2 REQUIRED Calculate the cost or value in to a customer who wished to a) buy US$ 14,000 one month forward b) buy C$25,000 Spot c) buy BF 75,000 3 months forward d) sell guilders 28,000 1 months forward e) Sell K 20,000 3 months forward f) Sell DM 6,000 1 month forward
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