Spot rate is: USD1 = HKD7.5000 1-year Forward rate is: USD1 = HKD7.6875 What is the forward rate premium/discount for HKD? ____ percent (dont include % sign) 2.57 NOTE: you need to get the value of ONE HKD before doing any analysis. Save Exit
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To do this, we need to compare the 1-year forward rate with the spot rate. The spot rate is given as USD1 = HKD7.5000. The 1-year forward rate is given as USD1 = HKD7.687. To calculate the forward premium/discount rate, we need to find the difference Show more…
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