A spot exchange rate for the Euro / U.S. Dollar is 363.00 £/$.What’s the 1-month...

A spot exchange rate for the Euro / U.S. Dollar is 363.00 £/$. What’s the 1-month forward mid-rate ( £/$) when the quotes are an ask of -325? bid of -125?

Solutions

Expert Solution

Mid Rate is the average rate of Ask and Bid rate.

Ask Rate = 363 - 325/10,000

= 362.9675

BID Rate = 363 - 125/10,000

= 362.9875

Mid Rate = (362.9675 + 362.9875) / 2

= 362.9775

The Mid Rate is 362.9775

jeff jeffy answered 1 year ago

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