The euro spot exchange rate is 150euro and the 120 day, Ask an Expert

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The €/$ spot exchange rate is $1.50/€ and the 120 day forward exchange rate is 1.45/€. If the $ and € interest rates are 2.446% and 1.892% respectively, what is the forward premium or discount?

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Consider the following spot and forward rate quotations for the Swiss franc: S($/SFr) = 0.85 F1($/SFr) = 0.86 F2($/SFr) = 0.87 F3($/SFr) =0.88 If the SFr interest rate is .934% and the $ interest rate is 1.137%, calculate the 3-month forward premium or discount in American terms. Assume 30-360 pricing convention:

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Suppose you observe a spot exchange rate of $2.0671/£ and a 3 mo. forward rate of $2.0317/£. If interest rates are 5.375 percent APR in the U.S. and 2.148 percent APR in the U.K., what is the no-arbitrage 1-year forward rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92821548

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