Calculate the forward rate for a 30-day Forward Contract given Spot Rate = 1.1542 AUD/CAD. The 30-day deposit rate in Canada is 5% and the corresponding rate in Australia is 8% (Note: The interest rates given are not annual rates but are for 30 days. No conversion necessary.)
Calculate the forward rate for a 30-day Forward Contract given Spot Rate = 1.1542 AUD/CAD. The 30-day deposit rate in Canada is 5% and the corresponding rate in Australia is 8% (Note: The interest rates given are not annual rates but are for 30 days. No conversion necessary.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Calculate the forward rate for a 30-day Forward Contract given Spot Rate = 1.1542 AUD/CAD. The 30-day deposit rate in Canada is 5% and the corresponding rate in Australia is 8% (Note: The interest rates given are not annual rates but are for 30 days. No conversion necessary.)
2) Given Spot Rate=1.3275 SF/$ and the one-year forward rate is 1.3159 SF/$. What should be the one year interest rate in the US if the one year interest rate in Switzerland is 10%
3) Given Forward Rate is 1.50SF/$, i$ = 8%, iSF=10%, calculate the spot price today
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