The 3 Month Forward Rate Between British Pound and the Swiss

question 24

Multiple Choice

The 3 month forward rate between British pound and the Swiss franc is £0.5/SF.The current spot rate is £0.51/SF.

• A)The Swiss franc is trading at a 1.96% premium to the British pound for delivery in 90 days.
• B)The Swiss franc is trading at a 7.84% premium to the British pound for delivery in 90 days.
• C)The Swiss franc is trading at a 1.96% discount to the British pound for delivery in 90 days.
• D)The Swiss franc is trading at a 7.84% discount to the British pound for delivery in 90 days.

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