Question: F S (1+p) and p (F-S)/S Know the difference between the periodic premium and the annualized premium. Pannualzed (lus-) approximate 1) The 180-day forward rate

F S (1+p) and p (F-S)/S Know the difference between the periodic premium and the annualized premium. Pannualzed (lus-) approximate 1) The 180-day forward rate for the euro is $1.25, while the current spot rate of the euro is $1.24. What is the annualized forward premium or discount of the euro? 2) If US$ interest rates are 3 %, what would be an approximation for Euro interest rates? 3) The 90-day forward rate for the MXN peso is $0.055 and the current spot rate on the MXN peso is $0.056. What is the annualized forward premium or discount of the peso? If US$ interest rates are 3 % , what would be an approximation for MXN interest rates? 4) 5) The spot rate today on the Euro is $1.25 and the April 2019 Future contract is trading at (April 15 2019) $1.27. What will the April 2019 future contract be trading at on Oct. 15, 2018, if on October 15, 2018 the spot rate on the Euro has moved to $1.33 and the annualized premium on the euro is 2%? Futures contracts: What are they and how are they different from Forward contracts, how are they similar? 213e E

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