Forex Spot and Forward Illustration 25
(a) Indian bank’s spot rate is 54.25 /€. It offers € at 3% annual forward discount. Calculate its 6 months forward rate.
(a) Barclays Bank offers Canadian Dollar for £0.5005/0.5050 spot. Calculate percentage spread of the bank.
(b) Bank A quotes 2.63 ¥ = Re. 1 Bank B quotes 0.51£ / C$. Identify the countries in which these are direct quotes.
(c) 54.5050/54.5250 spot 3 month forward 75/50. Write forward rate in outright form.
(Ans.: (a) 53.4363 /€, (b) 0.89% (c) Japan, Britain (d) 54.4975/54.5200)
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