Spot Rates 129.87 Mid Rates Bid Forward Rates 1 month 6 months 129.68 128.53 129.82 -20 -136 Ask 129.92 -18 -132 Mid Rates Bid 1.4484 1.4459 1.4327 1.4481 -26 -160 Ask 1.4487 -24 -154

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter6: Investing And Financing Activities
Section: Chapter Questions
Problem 3.5C
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Yen: Spot and Forward (\/$)
Mid Rates Bid
Spot Rates 129.87
Forward Rates
1 month 129.68
6 months 128.53
129.82
-20
-136
Ask
129.92
-18
-132
Pound: Spot and Forward ($/£)
Mid Rates Bid
1.4484
1.4459
1.4327
1.4481
-26
-160
Ask
1.4487
-24
-154
According to the information provided in the table, the 6-month yen is selling at forward premium or
discount? Please show your calculation and show the numbers of premium(or discount) in
percentage.
Transcribed Image Text:Yen: Spot and Forward (\/$) Mid Rates Bid Spot Rates 129.87 Forward Rates 1 month 129.68 6 months 128.53 129.82 -20 -136 Ask 129.92 -18 -132 Pound: Spot and Forward ($/£) Mid Rates Bid 1.4484 1.4459 1.4327 1.4481 -26 -160 Ask 1.4487 -24 -154 According to the information provided in the table, the 6-month yen is selling at forward premium or discount? Please show your calculation and show the numbers of premium(or discount) in percentage.
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