The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($ per SF). $ 0.8210 $ 0.8520 Spot 30-day forward 90-day forward 180-day forward a. Was the Swiss franc selling at a discount or premium in the forward market? Premium Discount $ 0.8548 $ 0.8595 b. What was the 30-day forward premium (or discount) percentage? Note: Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places. 30-day forward premium/discount 96

The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($ per SF). $ 0.8210 $ 0.8520 Spot 30-day forward 90-day forward 180-day forward a. Was the Swiss franc selling at a discount or premium in the forward market? Premium Discount $ 0.8548 $ 0.8595 b. What was the 30-day forward premium (or discount) percentage? Note: Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places. 30-day forward premium/discount 96

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter7: International Arbitrage And Interest Rate Parity

Section: Chapter Questions

Problem 40QA

See similar textbooks

Similar questions

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 $0.8596 a. Was the Swiss franc selling at a discount or premium in the forward market? Discount O Premium b. What was the 30-day forward premium (or discount) percentage? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 30-day forward premium/discount % c. What was the 90-day forward premium (or discount) percentage? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) 90-day forward premium/discount %
Forward premiums/discounts. Referring to the forward quotes in the Wall Street Journal (Exhibit 5.5) for the Japanese yen, determine whether the yen is at a premium or discount against the U.S. dollar. What is the percentage premium/discount for maturities of one, three, and six months? Included images for reference
Consider the following spot and forward rate quotations for the Swiss franc. S($/SFr) = 0.85 F1($/SFr) = 0.86 F2($/SFr) = 0.87 F3($/SFr) =0.88 Which of the following is true? Multiple Choice The Swiss franc is trading at a forward discount. The Swiss franc is trading at a forward premium. The Swiss franc is probably going to be worth less in dollars in six months. The Swiss franc is definitely going to be worth more dollars in six months.
) In another case are these quotes: Spot rate €1.2562/£; 1 month forward €1.2662/£ Which of the two currencies is trading at forward discount? And why
A treasurer of a company got the following quotation from an FX dealer: "The dollar euro is sixty-two ten-fifteen, thirteen-thirty-one". What is the forward rate? Select one: a. USD/EUR 0.6210-15 b. AUD/EUR 0.6210-15 c. USD/EUR 0.6223-46 d. AUD/EUR 0.6223-46 e. USD/EUR 0.6184-97
) In another case are these quotes: Spot rate €1.2562/£; 1 month forward €1.2662/£. Which of the two currencies is trading at forward premium?
The spot rate on the London market is £0.5520/$, while the 90-day forward rate is £0.5589/$. What is the annualized forward premium or discount on the British pound? (Round answer to 2 decimal places, e.g. 17.54%. Use 360 days for calculation.) Forward premium or (discount) %
The 90-day forward rate for the euro is $1.07, while the current spot rate of the euro is $1.05. The annualized forward premium or discount of the euro suppose to be _______. A. 1.9 percent discount B. 1.9 percent premium C. 7.6 percent premium D. 7.6 percent discount
The 60-day forward rate for the Canadian dollar is $1.07/C$, while the current spot rate of the Canadian dollar is $1.05/C$. What is the annualized forward premium or discount of the Canadian dollar? A. 11.4 percent premium. B. 1.9 percent discount. C. 11.4 percent discount. D. 1.9 percent premium.
(Cost of Trade Credit) Calculate the effective cost of the following trade credit terms where payment is made on the net due date. 2/10, net 30 3/15, net 30 Common Stock A Common Stock B Probability Return Probability Return .30 11% .20 25% .40 15% .30 6% .30 19% .30 14% .20 22%
The approximate effective cost (EC) of financing the discount price of trade credit under terms 2/10, net/30 using a 360 day year is?
Using Exhibit 5.7, calculate the three-month forward premium or discount for the Swiss franc versus the U.S. dollar. For simplicity, assume each month has 30 days. (X.XX%) or (-X.XX%)