User Account

All Pages

What is the outright 3-month forward rate

Assignment Help Finance Basics
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

Questions Cloud

Discuss the relationship between power and leadership : Discuss the relationship between power and leadership. What power must a leader have in order to lead effectively?
Which transactions is not reported as an adjustment : Which transactions is NOT reported as an adjustment to net income when the indirect method is used to compute net cash flows from operating activities?
Arbitrage-free gpb/usd spot rate : Currently, the 90-day GBP/USD forward rate is trading at 1.2872. The corresponding GBP interest rate is 2.30% and the USD interest rate is 3.20%.
Compute the segment margin reported by Division A in May : LTB, Inc. reported the following income statement information for April: Compute the segment margin reported by Division A in May
What is the outright 3-month forward rate : 1. Suppose that the 6-month forward rate for the dollar in terms of the Swiss franc for Wednesday was SF0.9680/$.
Defining economic justice and social justice : The Center for Economic and Social Justice defines "social justice" as "giving to each what he or she is due." "Economic justice" is concerned with determining.
Research one of the major human diseases : Discussion - Exploring Our Gut Microbiota - How can we best utilize this knowledge in our own lives? Can we help those we love with their health issues by help
Calculate the payback period of the project : Sprint Bolt Ltd is a producer of specialised sport shoes. The company has been conducting research and development of a new model, where the lower mould can aut
Challenges of good planning and forecasting : The challenges of good planning and forecasting in an extended value chain. Some tools that can be used to help with planning and forecasting

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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