Using the spot and outright forward quotes in the table below, determine the corresponding bidask spreads in points. Spot 1.3487 − 1.3500 OneMonth 1.3496 − 1.3514 ThreeMonth 1.3512 − 1.3535 SixMonth 1.3552 − 1.3580

Spot rate:
Given, Spot rate = 1.3487/1.3500
Spot Bid Ask spread
= 1.3500  1.3487 = 13 points
One Month Forward rate:
One month forward rate = 1.3496/1.3514
One month Bid  Ask spread
= 1.3514  1.3496 = 18 points
Three Month Forward rate:
Three months forward rate = 1.3512/1.3535
Three month Bid  Ask spread
= 1.3535  1.3512 = 23 points
Six Month Forward rate:
Six months forward rate = 1.3552/1.3580
Six month Bid  Ask spread
=1.3580  1.3552 = 28 points
Summary:
Particulars  Bid  Ask spread in points 
Spot  13 
One  Month  18 
Three  Month  23 
Six  Month  28 
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