180-day forward franc
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Review the attached table.
On Wednesday, how much was the 180-day forward franc selling at? Explain.
Comparing the franc's forward rates against the franc's spot rate, what is the exchange market's consensus on the franc's spot rate against the dollar over the period of a forward contract? In other words, will the franc's spot rate appreciate or depreciate against the dollar? Explain.
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Solution Summary
This solution explains the concept of change in spot rate of 180-day forward franc.
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How much was the 180-day forward franc selling at? Explain.
On Wednesday, 180 day forward franc is selling at US$ .6577. It can be seen in the table the 180 day forward rate ...
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