Question:

How to calculate outright spot rate..

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closing mid-point spot rate: £1 = $2.0911

closing bid/offer spread: 905-918

closing mid-point 3m forward rate: £1 = $2.0841

bank of england index (base 1005=100): 98.5

(A) Write down the outright spot rate for the sterling.

(B) Interpret the outright spot rate for the sterling.

(C) State whether the forward dollar is at a premium or discount to the spot rate and write down this amount.

(D) Compute the percent per annum deviation from the spot rate.

Any help appreciated, working on some past papers for my finance class and I am stumped :(.

Thanks in advance :).

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1 ANSWERS


  1. oops! I am not an expert in finance

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