Assume you reside in the united states calculate forward


The Canadian-U.S. spot rate S0C$/$ is quoted as ''C$1.2340/$ Bid and C$1.2350/$ Ak.'' The 6-month forward rate F1C$/$ is quoted as ''C$1.2382/$ Bid and C$1.2397/$ Ask.'' 
Assume you reside in the United States. Calculate forward quotes for the Canadian dollar as an annual percentage premium or discount. Would a FX trader in Canada get a different answer if asked to calculate the annual percentage premium or discount on the U.S. dollar for each forward rate? Why? 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Assume you reside in the united states calculate forward
Reference No:- TGS01012828

Expected delivery within 24 Hours