--%>

Forward cross-rates in German terms

Compute 30-, 90-, and 180-day forward cross exchange rates between German mark and Swiss franc by utilizing the most recent quotations.  Specify forward cross-rates in “German” terms.

E

Expert

Verified

The formulas which is used are:

FN(DM/SF) = FN($/SF)/FN($/DM)

or

FN(DM/SF) = FN(SF/$)/FN(DM/$).

The top formula which uses the American term forward exchange rates are:

F30(DM/SF)   = .6408/.5246 = 1.2215 

F90(DM/SF)   = .6453/.5270 = 1.2245

F180(DM/SF)  = .6518/.5307 = 1.2282

   Related Questions in Financial Accounting

  • Q : Difference among personal or real

    What is the difference among personal or real account and nominal account?

  • Q : Review the accounting cycle the

    Assignment: The purpose of this assignment is to review the accounting cycle--the procedures that businesses normally use to record transactions during the year and prepare financial statements at the end of the year.  The accounting cycle is discussed in Chapter 3 of your textbook. &nb

  • Q : Case study of a wind turbine for rural

    The goal of this long problem is to validate the turbine performance estimates in specific (XYZ) wind regimes, and estimate its cost.  Below is a list of tasks you will need to accomplish, but you are not limited to these if you want to do more:  

  • Q : Advance methods which are used in banks

    What are the advance methods which are used in banks presently?

  • Q : CASH AND ACCRUAL BASIS OF ACCOUNTING

    Using the data below,prepare abbreviated income statements for the year 2003 and 2004 on cash basis. Cash receipts from sales: 2003 2004 2005 on 2003 sales $295,000 $160,000 $30,000 On 2004 sales 0 355,000 90,000 On 2005

  • Q : Workings and nature of the financial

    Assume that you are really interested in investing in the shares of Nokia Corporation of Finland that is a world leader in the wireless communication. However, before making the investment decision, you might like to learn about company. Take a look of the website of

  • Q : Define uniform cost manual Give a brief

    Give a brief introduction of the term ‘uniform cost manual’. And also write down its different contents?

  • Q : MIS reports What are MIS reports and do

    What are MIS reports and do you made it?

  • Q : Country and political risk What is

    What is country risk and how it is different from the political risk?

  • Q : Monetary approach to determine exchange

    Derive and explain monetary approach in order to determine the exchange rate.