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.
Expert
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
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