Calculate forward rate foreign exchange

CMA 1000 views 5 replies
User Avatar

Freelance Consultant
77 Points Joined February 2010

 

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

0 Reply Share Follow
On 02 November 2012 at 18:06 Report
Replies (5)
User Avatar

CA
1877 Points Joined November 2008

ans.50.36

1 Reply
On 02 November 2012 at 18:37
User Avatar

CA (Ahmedabad Bhilwara Chittorgarh)
4128 Points Joined November 2009

 

50.36971154

 

Reply
On 02 November 2012 at 18:47
User Avatar

Freelance Consultant
77 Points Joined February 2010

Please advise the working sheet and formula, Sir 

Reply
On 02 November 2012 at 18:51
User Avatar

CA (Ahmedabad Bhilwara Chittorgarh)
4128 Points Joined November 2009

 

 

 

 

49.89 +5% /1.04= 50.3697

Reply
On 02 November 2012 at 19:01
User Avatar

Freelance Consultant
77 Points Joined February 2010

Dear All

Te correct forward rate is 49.94

Thanks for participation

 

Awni Ranjan

Reply
On 04 November 2012 at 06:21


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading