Calculate the 30-, 90-, & 180-day forward cross exchange rates among the German mark and the Swiss franc by using the most current quotations. Describe the forward cross-rates in "German" terms.
The formulas we desire to use are:
FN(DM/SF) = FN($/SF)/FN($/DM)
or
FN(DM/SF) = FN(SF/$)/FN(DM/$).
We will employ the top formula which employs American term forward exchange rates.
F30(DM/SF) = .6408/.5246 = 1.2215
F90(DM/SF) = .6453/.5270 = 1.2245
F180(DM/SF) = .6518/.5307 = 1.2282