Dealer lent PKR 15,000,000 at 11.50% for 11 months (335 days) and forward rate (effective rate) for
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Question:
Dealer lent PKR 15,000,000 at 11.50% for 11 months (335 days) and forward rate (effective rate) for 4*11 (215 days) is 12.35%(/10)
Required:
- What is your current borrowing rate for 4 months
- How could you hedge your position
- If the market is quoting 11.50/75 for 4vs11 at what rate will you deal.
- If currently 6 month Kibor is 12% and 7 month Kibor is 12.50%, after 4month 6 Month Kibor is 11.25%, and7 month Kibor is 10.50%. How much FRA buyer & seller pay/receive.
- What would be overall approximate profit & loss position of dealer after 4 Month
0-7days 6.38
8-15days 6.47
16-30days 6.48
31-60days 6.48
61-90days 6.48
91-120days 6.49
121-180days 6.49
181-270days 6.54
271-365days 6.55
Related Book For
Introduction to Management Science A Modeling and Cases Studies Approach with Spreadsheets
ISBN: 978-0078024061
5th edition
Authors: Frederick S. Hillier, Mark S. Hillier
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