What is the mid spot rate

Assignment Help Finance Basics
Reference no: EM131933208

Question: Andrew Broszio just started as an analyst for Credit Suisse in Zurich, Switzerland. He receives the following quotes for Swiss francs against the dollar for spot and 3-months forward.

Spot exchange rate:

Bid rate: SF 1.2575/$

Ask rate: SF 1.2585/$

And

3-months forward: 14 to 22 points

1) The mid spot rate is SF ( ) /$. ( In 4 decimals)

2) The mid rate for 3-month forward is SF( ) /$. ( In 4 decimals)

3) The annual forward premium/discount for 3-month forward based on mid rates is( ) %. ( In 2 decimals)

Reference no: EM131933208

Questions Cloud

Find which mortgage has the lowest cost of borrowing : Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $800,000. Mortgage A has a 4.25% interest rate and requires.
What is the optimal order size : Assume that the shipping company charges $900 as fixed cost per shipment
Can the hotel be charged with a crime for allowing suspect : Can you order your front desk staff and security to have all persons suspected of being prostitutes removed from the property?
Transportation problem and unbalanced transportation : What is the difference between solving a balanced transportation problem and an unbalanced transportation problem.
What is the mid spot rate : Andrew Broszio just started as an analyst for Credit Suisse in Zurich, Switzerland. He receives the following quotes for Swiss francs against the dollar.
Prepare the journal entry to record this conversion : On March 5, 2012, each share of preferred was converted. Prepare the journal entry to record this conversion
Profitable and unprofitable online businesses today : What frequently makes the difference between profitable and unprofitable online businesses today?
Compute the ratio of cost of sales to net sales : Compute the ratio of cost of sales to net sales for the two most recent years. Interpret the ratio and discuss the implications of the changes in the ratio.
Commitment to the environment : Most advertising is product focused. However, companies like Exxon-Mobile advertise their commitment to the environment

Reviews

Write a Review

Finance Basics Questions & Answers

  Which of the following should be considered incremental cash

Danielle's is a furniture store that is considering adding appliances to its offerings. Which of the following should be considered incremental cash flows of this project?

  Discuss two variables you would examine very carefully if

discuss two variables you would examine very carefully if you were analyzing a high-yield bond and indicate why they

  Distributive bargaining-reservation price-bracketing

The five Distributive Bargaining Negotiation Skills are: Distributive Bargaining, Reservation Price, Bracketing, Norms and Framing. Be sure to address the following:

  Interest rate sensitivity in declining order

Rank the following securities according to their interest rate sensitivity in declining order

  Explain valuation of bond using the given information

Explain Valuation of bond using the given information and make an annual coupon payment of $70

  Compute the annual interest payments and principle amount

Compute the annual interest payments and principle amount for a treasury inflation protected security with a par value of $1,000 and a 3 percent interest rate if inflation is 4 percent in year one 5 percent in year two and 6 percent in year three.

  What was the amount he withdrew at the end of the eight year

If the interest rate was 8% per year throughout the whole period, what was the amount he withdrew at the end of the eight year?

  What is the yield to maturity at the current market price

If ABC Co. has bonds with 4 years remaining to maturity. Coupons are paid annually, the bonds have a $1,000 par value and coupon interest rate is 8%. a. What is the yield to maturity at the current market price of $1,210?

  What is the one year rate five years from now

Suppose the spot rates are: 1-Year Rate: 4%, 2-Year Rate: 5.5%, 3-Year Rate 6%, 4-Year Rate: 6.5%, 5-Year Rate: 7%, 6-Year Rate: 9% and 7-Year Rate: 10.5%  What is the one year  rate five years from now?

  The bond is callable after the 10th year for a call

a 20-year 1000 par value bond has a 7 annual coupon. the bond is callable after the 10th year for a call premium of

  What is the expected npv of the project

If Vance's expected cost of capital is 0.19, what is the expected NPV of the project?

  Calculation of effective interest rate of foreign currency

Calculation of effective interest rate of foreign currency loan due to changes in exchange rates

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd