Calculate the forward per annum premium or discount given the following quotes. Spot £1 = $1.4000; 3 months forward £1 = $1.4200.
Q2:Currency A is selling for $0.61 and the buying rate for Currency B is $0.19. The currency A : currency B cross rate is?
Q3The Swiss interest rate for government securities with a one-year maturity is 4% and Swiss inflation for this period is expected to be 2%. The US interest rate on similar securities is 7% and US inflation is expected to be 5% over the next year. The current spot rate is SF1.4600 = $1. Using the International Fisher effect, what is next year's likely spot rate?