Forex Spot and Forward Illustration 26


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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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