Top Posters
Since Sunday
d
4
N
3
3
R
3
k
3
o
3
Z
3
j
3
s
3
d
3
J
3
1
3
This topic contains 1 attachment.
Home Q & A Board Other Fields Homework Help Business
New Topic  
boland boland
wrote...
Go to Answer
Posts: 1892
Rep: 16 0
8 years ago
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%
Textbook 
Fundamentals of Multinational Finance

Fundamentals of Multinational Finance


Edition: 5th
Authors:
Read 997 times
5 Replies
Replies
Answer verified by a subject expert
noxx53noxx53
wrote...
#1
Top Poster
Posts: 1891
Rep: 43 0
8 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

boland Author
wrote...
#2
8 years ago
You're amazing, seriously
wrote...
#3
8 years ago
Pleasure is all mine
Anonymous
wrote...
#4
A year ago
Help! The answer is missing an explanation...
Anonymous
wrote...
#5
A year ago
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%
 Attached file 
Thumbnail(s):
You must login or register to gain access to this attachment.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1614 People Browsing
 106 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 4493
  
 189
  
 165
Your Opinion
What's your favorite math subject?
Votes: 559
Previous poll results: Who's your favorite biologist?