The spot and 90‑day forward rates for the euro are $1.3320/€ and $1.3402/€, respectively. The euro is said to be selling at a forward__________ (annualized %).
a. |
Premium 1.4% |
|
b. |
Premium 2.46% |
|
c. |
Discount 1.4% |
|
d. |
Discount 2.46% |
Given, | |||||||||
Spot rate | $1.3320/Euro | ||||||||
Forward rate | $1.3402/Euro | ||||||||
No of days of forward contract | 90 days | ||||||||
We know, | |||||||||
Annualised forward discount on Euro= ((Forward rate-Spot rate)/Spot rate)*100*(360/number of days of forward contract) | |||||||||
((1.3402-1.332)/1.332)*100*(360/90) | |||||||||
2.46% (premium) | |||||||||
* assuming number of days in a year=360 days | |||||||||
Answer: Option B |
The spot and 90‑day forward rates for the euro are $1.3320/€ and $1.3402/€, respectively. The euro...
The spot and 30-day forward rates for the Swiss franc are $0.9075 and $0.9120 respectively. The Swiss franc is said to be selling at an annualized forward ______
Spot Question 2 Given below are spot and forward rates expressed in US dollars per unit of the Euro and £ Rates 1.5393 1.6030 30 days forward 1.5406 1.6006 60 days forward 1.5425 1.6000 90 days 1.5431 1.5945 180 days 1.5478 1.5859 Required: i. Is the 90-day forward € quoted at a discount or at a premium? ii. Is the 90-day forward contract in pound trading at a discount or at premium? iii. Relative to the pound is the 180...
The following exchange rates exist on a particular day. Spot exchange rate: U.S. $1.400/euro Forward exchange rate (90 days): U.S. $1.427/euro The following (annualized) interest rates on 90-day government bonds also exist on this day: Euro-denominated bonds: 8% U.S. dollar–denominated bonds: 16% Financial investors in all countries have the expectation that the spot exchange rate in 90 days will be 0.7100 euro/U.S. dollar. Are investors expecting the euro will appreciate or depreciate during the next 90 days? Consider the comparison...
USbank quotes 90-day forward rates of ¥0.96843-50/$, and spot rates of ¥0.96822-25/$ What are the spot ask rate and the 90-day forward ask rate for dollar that Bank of New York is quoting,respectively?
If the forward value of the Euro is 100 yen/Euro, and the spot is 89.29 yen/Euro, it means, 1) The Yen is selling at a premium of 16% 2) The Yen is selling at a premium of 10.71% 3) The Yen is selling at a discount of 10.71% 4) The Yen is selling at a discount of 12%.
Suppose the spot rate and forward rate for the British pound are $1.25/₤ and $1.2/₤ respectively. Assume the forward pound is selling at an 8% (annualized) discount, what is the number of days of the forward contract? a. 60 days b. 90 days c. 180 days d. 30 days
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF). Spot $ 0.8215 30-day forward $ 0.8530 90-day forward $ 0.8553 180-day forward $ 0.8600 a. Was the Swiss franc selling at a discount or premium in the forward market? Discount Premium b. What was the 30-day forward premium (or discount) percentage? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) c. What was the 90-day forward...
The spot rate on the London market is £0.5500/$, while the 90-day forward rate is £0.5579/$. What is the annualized forward premium or discount on the British pound? (Round answer to 2 decimal places, e.g. 17.54%. Use 360 days for calculation.) Please write out the equation. I am trying to teach myself.
Spot rates for 90-day, 180-day, 270-day, and 360-day loans are 2%, 2.5%, 2.75%, and 3%, respectively. Given this information, the 90-day forward rate 180 days from now is closest to: Group of answer choices A. 3.21% B. 2.88% C. 3.67%
Spot $ 0.8221 30-day forward $ 0.8542 90-day forward $ 0.8559 180-day forward $ 0.8606 What was the 30-day forward premium (or discount) percentage? What was the 90-day forward premium (or discount) percentage? Suppose you executed a 90-day forward contract to exchange 290,000 Swiss francs into U.S. dollars. How many dollars would you get 90 days hence? so for the first question I got 0.544, this was obviously wrong and I know it wont allow me to answer the remaining...