A foreign exchange dealer (market maker) provides the following quotes for spot and one-month forward rates between
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Question:
A foreign exchange dealer (market maker) provides the following quotes for spot and one-month forward rates between SF and US$:
Please answer the following two questions:
1) How much would you (as a client) receive in Swiss franc (SF) if you sell $1,000,000 to the bank at the spot rate?
2) How much would you have to pay in SF if you buy $1,000,000 from the bank in a one-month forward contract?
Related Book For
Multinational Finance Evaluating Opportunities Costs and Risks of Operations
ISBN: 978-1118270127
5th edition
Authors: Kirt C. Butler
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