30 Day Forward $0.8504
90 Day Forward $0.8540
180 Day Forward $0.8587
A. Was the Swiss franc selling at a discount or premium in the forward market?
B. What was the 30 day forward premium (or discount)?
C. What was the 90 day forward premium (or discount)?
D. 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?
E. Assume a Swiss bank entered into a 180 day forward contract with Citicorp to buy $100,000.00. How many francs will the Swiss bank deliver in six months to get the U.S. dollar?