important question of MAFA

802 views 1 replies

 plz solve this sum ???

 

QUS: You are given the following information by your BANKER :

SPOT RATE (Rs./Can $)                                 :         25.00/26.00

Rupee Interest Rate (6 months)                  :         14.00/16.00

Can $ Interest Rate (6 months)                   :           9.00/11.00

DETERMINE THE LIMITS FOR SIX MONTH FORWARD RATES.   

Replies (1)

Here i m giving solution as per my opinion -

Fwd. rate for bid side -=25 * (1+{14*6/12}) / (1+{11*6/12})

                                         =25(1.07/1.055)

                                        =25.3555

Fwd. rate for ask side = 26 * (1+{16*6/12}) / (1+{9*6/12})

                                        = 26(1.08/1.045)

                                       = 26.8708

Thus fwd quote would be 25.3555/26.8708

If you have answer for the question then plz. verify the solution.

 


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