Reading 18- LOS f ～ Q6－10

6．day, the spot rate on Japanese yen is $0.008000 and 180-day forward yen are priced at $0.008250. The annualized forward premium is:

A)   6.250%.

B)   6.060%.

C)   3.125%.

D)   3.030%.

The correct answer was A)

Forward premium = ($0.008250 - $0.008000)/$0.008000 x (360/180) = 0.0625 = 6.25 percent.

7． the forward rate expressed in domestic currency units is above the spot rate, then the foreign currency is at a:

A)   forward discount.

B)   forward premium.

C)   spot premium.

D)   spot discount.

The correct answer was B)

A foreign currency is at a forward premium if the forward rate expressed in domestic currency is above the spot rate. Forward premium = forward rate – spot rate.

8．e forward rate on a 90-day contract is 5 DC/$ and the spot is 4 DC/$. The $ is trading at a forward:

A)   premium of 0.8.

B)   premium of 1.0.

C)   discount of 0.8.

D)   discount of 1.0.

The correct answer was B)

A foreign currency is at a forward premium if the forward rate expressed in dollars is above the spot rate. Forward premium = forward rate – spot rate = 5 - 4 = 1.

9．e current spot rate quote is 2 USD/GBP. A 180 day forward discount for the GBP of 2% (annualized) would reflect a forward price of:

A)   1.96 USD/GBP.

B)   2.02 GBP/USD.

C)   1.98 USD/GBP.

D)   2.04 GBP/USD.

The correct answer was C)

The GBP is at a forward discount if the forward rate expressed in USD/GBP is below the spot rate. Since the annualized discount is 2%, the 180 day forward discount is 1% of spot, or USD 0.02.

[(1.98 - 2.00)/2.00](360/180) = -2%

10．oreign currency is at a forward premium if the forward rate:

A)   expressed in domestic currency is above the spot rate.

B)   expressed in domestic currency is below the spot rate.

C)   expressed in foreign currency/domestic currency is above the spot rate.

D)   expressed in foreign currency/domestic currency is at the spot rate.

The correct answer was A)

A foreign currency is at a forward premium if the forward rate expressed in domestic currency is above the spot rate. A forward discount exists if the forward rate is below the spot rate.

[此贴子已经被作者于2008-5-12 12:34:04编辑过]