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    Swap rate and forward premuim

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    4. An investor wishes to buy euros spot (at $0.9080) and
    sell euros forward for 180 days (at $0.9146).
    a. What is the swap rate on euros?
    b. What is the forward premium or discount on 180-
    day euros?

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    https://brainmass.com/business/swaps/swap-rate-and-forward-premuim-89198

    Solution Preview

    a. The swap rate is the difference between the forward rate and the spot rate.
    Swap rate = ...

    Solution Summary

    The solution explains the calculation of swap rate and forward premium.

    $2.19