The market rates for Rs and Dollar are as under :
Spot Rs.48.50/70
Two months 25/30 points
Three months 40/45 points
What are Forward rates?
As per my konwlwdge the swap points are to be adjusted to decimals
Therefore
2months Rs.48.75(48.50+0.25) / Rs.49.00(48.70+0.30)
3months Rs.48.90(48.50+0.40) / Rs.49.15(48.70+0.45)
Am I correct?
Whya I asked this questions is In MAY 2012 Q No : 5(a) suggested answer taken rates as follwos
2M 48.25/30
3M 48.40/45
Which is correct?