Question

A Global Forex trader gives the following quotes for the Swiss Franc spot, one month, three months and six months to US based treasurer

USD 1.0356/60 4/6 9/8 14/11

Calculate outright price for Spot, One – Month, Three- Month, Six Months

If the trader wished to buy 10,000 Swiss francs for one and three months forward, how much would he pay in dollars?

If he wished to purchase 20,000 US dollars three-Month Forward Contract and Six-Month Forward Contract, how much would he have to pay in Swiss Francs?

In case, the Swiss Francs are being bought. What will be the premium or discount for the One Month Contract rate and Three-Month contract rate in annual percentage terms?

Calculate the Bid- Ask Spread percentage for Spot, One Month, Three Months and Six Months the above details.

Answer 1

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