The Wall street Journal reported the following spot and forward rates for Swiss Franc ($/SF).
Spot $0.8202
30-day forward $0.8244
90-day forward $0.8295
180-day forward $0.8343
Q1. Was the Swiss franc selling at a discount or premium in the forward market?
Q2. What was the 30-day forward premium (or discount)?
Q3. What was the 90-day forward premium (or discount)?
Q4. Suppose you executed a 90-day forward contract to exchange 100,000 Swiss francs into U.S. dollars. How many dollars would you get 90 days hence?
Q5. Assume a Swiss bank entered into a 180-day forward contract with Bankers Trust to buy $100,000. How many francs will the Swiss bank deliver in six months to get the U.S. dollars?