In CA Final SFM, international finance, if the spot rate is given as euro 1.196-1.197/ sterling and 6month forward premium is shown as .60-.55cents, is the amount supposed to be added to arrive at the forward rate or as the premium is shown in descending order, the premium amount be deducted from the spot rate to arrive at the forward rate? please help
In such a case deduct the forward premium to arrive at forward rate.
If Premium amount is in ascending order then add
if it is decesending order then reduce
in your case deduct the premium
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