In: Finance
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?
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