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    Finance: 30-day forwards, 90-day forwards and exchange rates

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    The Wall Street Journal reported the following spot and forward rates for Swiss Franc ($/SF)
    Spot $0.8202
    30-day forward $0.8244
    90-day forward $0.8295
    180-day forward $0.8343

    a) Was the 30 day forward a discount or premium?
    b) Suppose you executed a 90 day forward contract to exchange 100,000 Swiss Francs (SF) into U.S. dollars. How many dollars would you get 90 days hence?
    c) Find the current exchange rates for five countries from around the world. List the name of the country, Capital City, exchange rate per U.S. dollar and what will be the amount in local currencies (those countries you have selected) if you exchange $500.

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    Solution Summary

    Provides steps necessary to determine exchange rate.