Question: Using the following data, compute the cost of hedging for each forward contract in terms of implicit commission and in terms of the extra spread

Using the following data, compute the cost of hedging for each forward contract in terms of implicit commission and in terms of the extra spread as a percent of the midpoint spot rate.

Rates Bid-ask | Hedging costExtra spread Maturity Spot 49.858-49.8980.040 Fwd 30 days |49.909-49.9650.056 Fwd 60 days 49.972-50.043 0.071 Fwd 90 days 50.061-50.157 0.096 Fwd 180 days 50.156-50.292 0.136

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