Question: Using the table, calculate the 6-month forward premium or discount (expressed as an annual percentage rate) for the Canadian dollar in terms of US dollars.

Using the table, calculate the 6-month forward premium or discount (expressed as an annual percentage rate) for the Canadian dollar in terms of US dollars.

Country

USD per Currency Currency per USD

British pound

spot rate 1.7368 0.5758

1 month forward 1.7369 0.5757

3 months forward 1.7380 0.5754

6 months forward 1.7409 0.5744

Canadian dollar

spot rate 0.8667 1.1538

1 month forward 0.8674 1.1529

3 months forward 0.8688 1.1510

6 months forward 0.8708 1.1484

IM AWARE OF THE FORMULA (FORWARD RATE- SPOT RATE)/ SPOT RATE* 360/N*100%)

BUT IM NOT TOO SURE IF I AM SUPPOSED TO USE THE USD PER CURRENCY FIGURES OR CURRENCY PER USD AND HOW DO YOU EASILY NAVIGATE TO THAT WITH OTHER SIMILAR QUESTIONS

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Country U.K. (Pound) 1 Month Forward 3 Months Forward 6 Months Forward Canada (Dollar) 1 Month Forward 3 Months Forward 6 Months Forward Japan (Yen) 1 Month Forward 3 Months Forward 6 Months Forward...

Country USD equiv. Currency per USD Tuesday Monday Tuesday Monday U.K. (Pound) 1.7368 1.7424 0.5758 0.5739 1 Month Forward 1.7369 1.7425 0.5757 0.5739 3 Months Forward 1.738 1.7434 0.5754 0.5736 6...

This question will be sent to your instructor for grading. Country USD equiv. Currency per USD Tuesday Monday Tuesday Monday U.K. (Pound ) 1. 7368 1. 7424 0. 5758 0.5739 1 Month Forward 1. 7369 1....

Country USD equiv. Currency per USD Tuesday Monday Tuesday Monday U.K. (Pound) 1.7368 1.7424 0.5758 0.5739 1 Month Forward 1.7369 1.7425 0.5757 0.5739 3 Months Forward 1.738 1.7434 0.5754 0.5736 6...

education.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fms.mheducation.com%252Fmghmiddleware%2 i Saved This question will be sent to your instructor for grading....

Country USD equiv. Currency per USD Tuesday Monday Tuesday Monday U.K. (Pound) 1.7368 1.7424 0.5758 0.5739 1 Month Forward 1.7369 1.7425 0.5757 0.5739 3 Months Forward 1.738 1.7434 0.5754 0.5736 6...

Current market quotes are: Spot: 121.22-72 per US$ 30-day forward: 121.37-85 per US$ Calculate 30-day forward premium or discount (expressed as an annual percentage rate) for the Japanese Yen in...

Need help with these questions! Thanks so much in advance!! 1. (16 points) A company based in the U.S. has sales which are roughly two-thirds in dollars and one-third in euros. In September the...

International Finance practice set. Thank you for the help on this in advance. Explanations with the parts that take solving would be best so I can learn and follow along on my other sets that I have...

Is information technology helping managers be more efficient and effective? Explain your answer.

A deficiency of the trace element selenium in the diet can negatively impact growth, immunity, muscle and neuromuscular function, and fertility. The introduction of selenium supplements to dairy cows...

outcome 1 = . 1 , outcome 2 = . 1 , outcome 3 = . 1 , outcome 4 = . 2 , outcome 5 = . 2 , outcome 6 = . 3 what is the probability of A intersect B if P ( A ) = number rolled is less than 4 and P ( B...

Elm is a public company with a 12/31 fiscal year-end. Elm reported a 12/31/2020 debit balance in AOCI of $53,000. Elm Inc. reported net income for the fiscal year 2021 of $140,000. In addition, the...

Marc has purchased a new car for $15,000. He paid $2,500 as down payment and he paid the balance by a loan from his hometown bank. The loan is to be paid on a monthly basis for two years charging 12...

The first production department of Stone Incorporated reports the following for April. Direct Materials Conversion Percent Complete 40 Percent Complete 60 Units Beginning work in process inventory...

John Stanley, a US investor based in New York, is considering a three-year investment on zero-coupon government bonds. Currently, the annual yield to maturity of US, German and Chinese zero-coupon...

Suppose David is a busy CEO and has high levels of consumption (C) but relatively little leisure time (L). Mike, on the other hand, has a part-time job and therefore lots of leisure (L) with...

what you learn from the classical management approahces, give me your peer review, (100word)

7. Develop a circular model, with positive and negative feedback loops, showing the following critical variables:

Technology

Population