points) Compute the forward premium for Spot rate Yen / USD - 85.25: Forward rate 3...

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Question

Answer 1

Answer #1

Forward premium(discount)=	(Forward rate - Spot rate)/Spot Rate
	(83.60-85.25)/85.25
	-1.94%
Forward Discount	1.94%


Forward premium(discount)=	(Forward rate - Spot rate)/Spot Rate
	(1.10-1.13)/1.13
	-2.65%
Forward Discount	2.65%

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Answer 2

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