Question: I did get an answer for part 1, i want to confirm the values for part 1, as well i need part 2 and 3
I did get an answer for part 1, i want to confirm the values for part 1, as well i need part 2 and 3 answered or the steps given as i do not know how to proceed. (this is all one question)
5. Use the table to answer the following questions Pound: S/ Bid Ask Spot 1.4481 1.4487 Forward 1 month -26 -24 6 months -160 -154 1) What is the one-month and 6-month forward bid/ask prices for pounds as denominated in dollar? 2) What is the annualized 1-month and 6-month forward premium (or discount) on pound? (Note: use bid price in the forward rates) 3) What is the annualized 1-month and 6-month forward premium (or discount) on S? (Note: use bid price in the forward rates)
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