Question: Andrew Broszio just started as an analyst for Credit Suisse in Zurich, Switzerland. He receives the following quotes for Swiss francs against the dollar for spot and 3-months forward.
Spot exchange rate:
Bid rate: SF 1.2575/$
Ask rate: SF 1.2585/$
And
3-months forward: 14 to 22 points
1) The mid spot rate is SF ( ) /$. ( In 4 decimals)
2) The mid rate for 3-month forward is SF( ) /$. ( In 4 decimals)
3) The annual forward premium/discount for 3-month forward based on mid rates is( ) %. ( In 2 decimals)