CoursHeroTranscribedText: AL TREATMENT REQUESTED BY BARCLAY ERS You, the client, wish to sell CAD forward one year

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CoursHeroTranscribedText: AL TREATMENT REQUESTED BY BARCLAY ERS You, the client, wish to sell CAD forward one year against the USD. Euro USD rates = 5.0 % Forward points = 0.0294 Euro CAD rates =7.0 % Spot Forward rate = 1.4794 = 1.45 CAD/USD Since you earned the interest rate differential, you will have to pay the points by paying more CAD per USD in the future. Points = 1.4500 * (7.0-5.0) * (365/360) * 100 Points = +294 points 1.4500 + 0.0294 = 1.4794

Posted Date: May 17, 2024 02:08 PM

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CoursHeroTranscribedText: AL TREATMENT REQUESTED BY BARCLAY ERS You, the client, wish to sell CAD forward one year

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