- The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF) in june of 2009:
- Was the Swiss franc selling at a discount or premium in the forward market?
- What was the 30-day forward premium (or discount)?
- What was the 90-day forward premium (or discount)?
- Suppose you executed a 90-day forward contract to exchange 100,000 Swiss francs into U.S. dollars. How many dollars would you get 90 days hence?
- Assume a Swiss bank entered into a 180-day forward contract with Citicorp to buy $100,000. How many francs will the swiss bank deliver in six months to get U.S. Dollars?