90.2K
Verified Solution
Link Copied!
1. The following spot and 90-day forward quotes involving Australian dollars (A$) and United States dollars (U.S.$) are given:
Spot: A$1.3178 - 214/U.S.$
90-day: 17-41
Which of the following statements is correct? Show your working.
a) The forward discount to buy A$ is 0.52%
b) The forward premium to buy A$ is 1.24%
c) The forward discount to buy A$ is 1.24%
d) The forward premium to buy A$ is 0.52%
e) The forward premium to buy A$ is 0.13%
Answer & Explanation
Solved by verified expert
