Probleman investor wishes to buy euros spot at 09080 and, Ask an Expert

Accounting

Problem:

An investor wishes to buy euros spot (at $0.9080) and sell euros forward for 180 days (at $0.9146).

Required:

Question 1: What is the swap rate on euros?

Question 2: What is the forward premium or discount on 180-day euros?

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171771

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