Calculate forward rate foreign exchange

Awni Ranjan (Freelance Consultant) (77 Points)

02 November 2012  

 

A customer expecting inward remittance of USD 5000 one month later wants his bank to give a one month forward rate

                      Interbank spot rate for USD is 49.89/50.11

                      One month deposit rate in India is 5%

                      One month funds can be borrowed in USA at 4%

       What will the bank quote?

Please help 

KINDLY send the calculation sheet please