Question: 6. Dealer lent PKR 15,000,000 at 11.50% for 11 months (335 days) and forward rate (effective
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Question: 6. 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%.
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
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