A bank is quoting the following rates:
DEM/$ spot : 1.5975/80
2 – month : 20/10
3 – month : 25/15
Saudi Riyals/$ spot : 3-7550/60
2 – month : 20/40
3 – month : 30/40
A firm wishes to buy Riyals against DEM 3 month forward, what rate will the bank quote.
(Mumbai University, October 2002)
(Ans.: Hence, bank will quote 2.3539 Saudi Riyals/DEM)
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