The spot rate of the dollar is SF1.2948/$. The month forward contract for the Swiss franc i quoted by a dealer at 8.80% discount. The s month outright forward rate is...

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The spot rate of the dollar is SF1.2948/$. The six-
month forward contract for the Swiss franc is
quoted by a dealer at 8.80% discount. The six-
month outright forward rate is...
SF1.2378/$
SF1.2402/$
SF1.3518/$
SF1.3544/$
SF1.4197/$
The Swiss franc spot rate is $0.7260/SF and the
Swiss franc 3-month forward rate is $0.7020/SF.
At what discount or premium would the Swiss
franc be quoted?
13.22%, premium
13.22%, discount
13.68%, discount
13.68%, premium
3.31%, discount
Transcribed Image Text:The spot rate of the dollar is SF1.2948/$. The six- month forward contract for the Swiss franc is quoted by a dealer at 8.80% discount. The six- month outright forward rate is... SF1.2378/$ SF1.2402/$ SF1.3518/$ SF1.3544/$ SF1.4197/$ The Swiss franc spot rate is $0.7260/SF and the Swiss franc 3-month forward rate is $0.7020/SF. At what discount or premium would the Swiss franc be quoted? 13.22%, premium 13.22%, discount 13.68%, discount 13.68%, premium 3.31%, discount
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