How many dollars would you get ninty days hence

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Reference no: EM132051464

The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF).


Spot	$	.8205
30-day forward	$	.8510
90-day forward	$	.8543
180-day forward	$	.8590

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)? (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)? (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 130,000 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 $130,000. 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

Reference no: EM132051464

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