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Other Fields Homework Help Business Topic started by: boland on May 18, 2016



Title: What was the annualized forward premium on the pound if the spot rate on May 6, 2011 was £0.6102/$ a
Post by: boland on May 18, 2016
What was the annualized forward premium on the pound if the spot rate on May 6, 2011 was £0.6102/$ and the 180 day forward rate was £0.5836/$?
A) 18.23%
B) 8.72%
C) 9.12%
D) 4.56%


Title: Re: What was the annualized forward premium on the pound if the spot rate on May 6, 2011 was £0.6102
Post by: noxx53 on Jun 24, 2016
Content hidden


Title: Re: What was the annualized forward premium on the pound if the spot rate on May 6, 2011 was £0.6102/$ a
Post by: boland on Jul 3, 2016
You're amazing, seriously


Title: Re: What was the annualized forward premium on the pound if the spot rate on May 6, 2011 was £0.6102/$ a
Post by: noxx53 on Jul 4, 2016
Pleasure is all mine


Title: BFSF: What was the annualized forward premium on the pound if the spot rate on May 6, 2011 was £0.6102/$ a
Post by: Dorin Tan on Jun 8, 2023
Help! The answer is missing an explanation...


Title: Re: What was the annualized forward premium on the pound if the spot rate on May 6, 2011 was ...
Post by: bio_man on Jun 9, 2023
Here's a similar question and its solution.

Solution:

Annualised forward premium on pound=((1/spot pound per dollar)/(1/forward pound per dollar)-1)*360/forward maturity=((1/0.5)/(1/0.5156)-1)*360/180
=6.24%