Suppose that the spot Swiss francs per dollar exchange rate is $:SFr = 1.5960-70 and the three-month

Question:

Suppose that the spot Swiss francs per dollar is $:SFr = 1.5960-70 and the three-month forward is $:SFr= 1.5932-62.
a. Is the Swiss franc trading at a discount or at a premium relative to the dollar in the forward market?
b. Compute the annualized forward discount or premium on the Swiss franc relative to the dollar.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...