Question

IASk On Aussie Dollar orward. Use the following spot and forward bid-ask rates or the US. dollar/Australian dollar (US$ A$1.00) exchange rate tro a. What is the midrate for each maturity? b. What is the annual forward premium for all maturities? c. Which maturities have the smallest and largest forward premiums? (Click on the icon to import the table into a spreadsheet.) 10, 2010, to answer the following questic Period Bid Rate Ask Rate spot 1 month 2 months 3 months 6 months 12 months 24 months 0.98452 0.98043 0.97684 0.97356 0.96311 0.94147 0.89709 0.98475 0.98076 0.97720 0.97399 0.96368 0.94223 0.89838 a. What is the mid-rate for each maturity? Calculate the mid-rate for each maturity below (Round to six decimal places.) Bid Rate Ask Rate Mid-rate Period Forward US$IA$ USSIAS USSIAS Spot 1 month 2 months 3 months 6 months 12 months 24 months 30 60 90 180 360 720 0.98452 0.98043 0.97684 0.97356 0.96311 0.94147 0.89709 0.98475 0.98076 0.97720 0.97399 0.96368 0.94223 0.89838 0.984635 0.980595 0.977020 0.973775 0.963395 0.941850 0.897735 b. What is the annual forward premium for all maturities? Calculate the annual forward premium for all maturities below: (Round to four decimal places.) Bid Rate US$IAS Ask Rate Forward Period Forward USSIAS Premium 0.98452 0.98475 1 month 30 0.98043 0.98076

I need the forward rate calculate for all the options from 1 month to 24 months like the above

Answer 1

b)	Period	Days	Bid Rate	Ask Rate		Forward
		Forward			Mid Rate	Discount
	Spot	0	0.98452	0.98475	0.984635
	1 month	30	0.98043	0.98076	0.980595	-4.9237%
	2 months	60	0.97684	0.97720	0.977020	-4.6403%
	3 months	90	0.97356	0.97399	0.973775	-4.4118%
	6 months	180	0.96311	0.96368	0.963395	-4.3143%
	12 months	360	0.94147	0.94223	0.941850	-4.3453%
	24 months	720	0.89709	0.89838	0.897735	-4.5147%
c)	Largest forward discount is for 1 month and smallest forward discount is for 6 months.