Calculate the forward discount or premium for the following spot and 6-month forward rates: (a) buy Swiss
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Question:
Calculate the forward discount or premium for the following spot and 6-month forward rates:
(a) buy Swiss franc today for SF 1= $1.1365 or you can agree for a delivery of Swiss franc in 180-day and pay SF=$1.1437 at that time.
(b) buy Swiss franc today for SF 1= $1.562 or you can agree for a delivery of Swiss franc in 180-day and pay SF=$1.5840 at that time.
What does it mean that it selling at forward discount and forward premium
Expert Answer:
To calculate the forward discount or premium we need to use the following formula Forward DiscountPr... View the full answer
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