Was the swiss franc selling at a discount in forward market

Reference no: EM131792723

Question: The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF) in June of 2009:

a. Was the Swiss franc selling at a discount or premium in the forward market?

b. What was the 30-day forward premium (or discount)?

c. What was the 90-day forward premium (or discount)?

d. Suppose you executed a 90-day forward contract to exchange 100,000 Swiss francs into U.S. dollars. How many dollars would you get 90 days hence?

e. Assume a Swiss bank entered into a 180-day forward contract with Citicorp to buy $100,000. How many francs will the Swiss bank deliver in six months to get the U.S. dollars?

Reference no: EM131792723

Questions Cloud

Approximate the absolute maximum point or the daily djia : Dow Jones averages the figure shows the daily Dow Jones Industrial Average (DJIA) and its 30-day moving average from late July to early November.

Discuss the process was streamlined and within government : A research and development team of chemical engineers was on staff to ensure that the process was streamlined and within government

What is the absolute maximum of ft : What is the absolute maximum of f(t)?Does this graph suggest that Social Security taxes will rise or will fall in the early 21st century? Explain.

Prepare journal entry to record the issuance of the bonds : Prepare journal entry to record the issuance of the bonds. Prepare an amortization table for 3 years - six interest periods by using straight line

Was the swiss franc selling at a discount in forward market : The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF) in June of 2009.

Discuss what is the salaries expense : federal and state unemployment tax and $87,000 for the employer portion of health insurance. What is the salaries expense

What are some of the groups that need accounting information : What are some of the groups that need accounting information? What kind of accounting information do they need? Why?

What equation do we differentiate to solve this problem : Suppose we want to find the minimum value of C = 5x + 2y and we know that x and y must be positive and that xy = 1000.

Discuss how would these 5 situations affect the assets : How would these 5 situations affect the assets, stockholders equity, cost of goods sold and net income

User Account

All Pages