4) Euro/C$ Ask Quote=0.6562 (Spot)
Euro/C$ Ask Quote=0.6560(90 Day forward)
Forward Premium/(Discount) on C$ vs Euro = ((Forward Rate-Spot Rate)/Spot Rate)*100*(360/N)
where N= No of days Forward
So, Forward Premium/(Discount) on C$ vs Euro on 90 day ask quote=((0.6560-0.6562)/0.6562)*100*(360/90)
=(0.12%) (Discount)
Since the 90 day forward direct ask quote is lower than the spot rate, the C$ is at a forward discount of 0.12%
5)
Euro/C$ Quotes (Direct Quote) | Bid Rate | Ask Rate |
Spot Rate | 0.6558 | 0.6562 |
180 day forward | 0.6546 | 0.6553 |
C$ /Euro Quotes (In-direct Quote) | ||
Spot Rate |
1/0.6562 =1.5239 |
1/0.6558 =1.5249 |
180 Day forward |
1/0.6553 =1.5260 |
1/0.6546 =1.5277 |
C$ /Euro Bid Quote = 1.5239 (Spot)
C$ /Euro Bid Quote= 1.5260 (180 Day forward)
Forward Premium/(Discount) on C$ vs Euro = ((Spot-Forward)/Forward)*100*(360/N)
So, Forward Premium/(Discount) on C$ vs Euro on 180 day bid quote=((1.5239-1.5260)/1.5260)*100*(360/180)
=(0.28%) (Discount)...Rounded of to 2 decimals.
6)
Euro/C$ Quotes (Direct Quote) | Bid Rate | Ask Rate |
Spot Rate | 0.6558 | 0.6562 |
90 Day forward | 0.6553 | 0.6560 |
C$ /Euro Quotes (In-direct Quote) | ||
Spot Rate |
1/0.6562 =1.5239 |
1/0.6558 =1.5249 |
90 Day forward |
1/0.6560 =1.5244 |
1/0.6553 =1.5260 |
90 day Swap points of C$/Euro |
5 | 11 |
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