Forex Spot and Forward Illustration 26
Following Quotes are given in Mumbai:
USD 1 = INR Spot 47.7000/7200
3 months forward 270/360
(a) Write the quotation in outright form
(b) Calculate annualized forward premium/discount for bid/offer rates
(c) What is the likely forward quote for 2 months and 20 days? (Nov. 2011)
(Ans.: (a) USD INR 47.7270/47.7560 (b) Annualized Forward premium for bid 0.23% and 0.30% (c) 47.7240/47.7520)
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