Question: By using the exchange rates provided below and by showing your full calculations, answer the following questions: Currency Spot 3 mths fwd pts 4 mths

By using the exchange rates provided below and by showing your full calculations, answer the following questions: Currency Spot 3 mths fwd pts 4 mths fwd pts 6 mths fwd pts USD/ZAR 14,0112/14,2292 834/886 1095/1145 1620/1680 NZD/USD 0,7080/0,7090 - - - GBP/USD 1,9566/1,9570 38/36 - - EUR/USD 1,3142/1,3147 - 45/43 - USD/CHF 1,2354/1,2364 32/28 - 60/57 Notes: mths stands for months; fwd stands for forward, pts stands for points 1.1. In three months time, ChemInt (Pty) Ltd is expected to pay an invoice in British pounds for a consignment of liquids used in the manufacturing of its products. Which forward cover rate would apply for this shipment? (5)

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