Forex Spot and Forward Illustration 7


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A bank is quoting

CHF/DEM 0.7865/78 spot

1 month forward 25/20 – 3 months forward 20/15

CHF/SEK 0.6348/56 1 month 40/45 – 3 months 60/70

Suppose ‘Reliance’ is willing to buy DEM/SEK

75 days, what rate probably the bank will quote?                                          (October 2007)

(Ans.: DEM/SEK 0.8144/0.8185)

 


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