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What is the outright 3-month forward rate

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Reference no: EM132622815

1. Suppose that the 6-month forward rate for the dollar in terms of the Swiss franc for Wednesday was SF0.9680/$.

a. If a currency dealer wanted to quote the U.S. dollar's 6-month forward rate as a premium or discount, what would that discount or premium be (up to 4 decimal places)?

b. If a currency dealer wants to quote the Swiss franc's 6-month forward rate as a discount or premium, what would that discount or premium be (up to 4 decimal places)?

2. The spot exchange rate between the British pound and the dollar today is £0.8040/$. The British pound three-month forward rate is quoted at 8.3400% discount.

a. What is the outright 3-month forward rate of the British pound in terms of the dollar?

b. What is the outright 3-month forward rate of the dollar in terms of the British pound?

c. At what premium/discount would the three-month dollar forward be quoted?

IN US$ US$ VS. % CHG PER US$

WED TUES 1-DAY YTD WED TUES

Switzerland franc 1.0929 1.1066 1.25 -5.4 0.9150 0.9037

U.K. pound 1.3099 1.3237 1.05 1.2 0.7634 0.7555

Reference no: EM132622815

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