The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF). Spot 30-day forward 90-day forward 180-day forward $0.8211 $0.8522 $0.8549 $0.8596 a. Was the Swiss franc selling at a discount or premium in the forward market? O Discount O Premium b. What was the 30-day forward premium (or discount) percentage? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 30-day forward premium/discount % c. What was the 90-day forward premium (or discount) percentage? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF). Spot 30-day forward 90-day forward 180-day forward $0.8211 $0.8522 $0.8549 $0.8596 a. Was the Swiss franc selling at a discount or premium in the forward market? O Discount O Premium b. What was the 30-day forward premium (or discount) percentage? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 30-day forward premium/discount % c. What was the 90-day forward premium (or discount) percentage? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Chapter7: International Arbitrage And Interest Rate Parity
Section: Chapter Questions
Problem 40QA
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