A corporate treasurer for Bayer in Germany calls Citibank in New York City and Barclays in London.
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Question:
A corporate treasurer for Bayer in Germany calls Citibank in New York City and Barclays in London. Both banks give the following quotes at the same time:
Citibank NYCBarclays London
$0.7551-61/$0.7565-75/
4.Calculate the forward discount/premium on the dollar ( the dollar is the home currency)
if the spot rate is $1.58/ Sterling and the 6 month forward rate is $1.5555/ Sterling.
5.Calculate the forward change now if the spot rate is 1.3300/$ and the 3-month
forward rate is 1.3400/$.
Expert Answer:
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