Market for foreign exchange–currency futures

Assignment Help Financial Management

Reference no: EM132007943

1) Market for Foreign Exchange – Currency Futures:

A) The 1 month DM forward rate is quoted at US$ 1.3134/50. The futures prices of 1 DM contract for delivery in 1 month is US$ 1.3382. What could you do in order to make some profit and how much is the profit?

B) The price of 1 French Franc contract for delivery in 1 month is US$ 5.2165. The 1 month forward price on French Franc is US$ 5.1813/29. What could you do in order to make some profit and how much is the profit?

C) The 1 month forward rate on C$ is US$ 1.6215/77. The futures of 1 Canadian dollar contract for delivery in 1 month is US$ 1.5950. What could you do in order to make some profit and how much is the profit?

Reference no: EM132007943

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