Assume the three-month euro-swiss franc rate is 225 the


Today the price of September Swiss Franc (SFr) futures goes from 1.2650$/SFr to 1.2810$/SFr. Meanwhile, the price of a three month (T=91 days) forward contract goes from 1.2615$/SFr to 1.2805$/SFr. Assume the three-month euro-Swiss franc rate is 2.25%, the standardized size of the Swiss franc contract is SFr125,000, and the amount of the forward contract is SFr100,000. What is the change in the present value of the forward contract?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Assume the three-month euro-swiss franc rate is 225 the
Reference No:- TGS0639614

Expected delivery within 24 Hours