Q10. Isaac Long is an English investor. He notices the 90–day forward rate for the Norwegian kroner is GBP0.0859 and the spot rate is GBP0.0887. Long calculates the annualized rate of the kroner to be trading at a:

A)   premium of 9.478%.

B)   premium of 21.17%.

C)   discount of 12.63%.

Q11. Today, the spot rate on pounds sterling is $0.6960 and 90-day forward pounds are priced at $0.6925. The annualized forward discount is:

A)      2.022%.

B)      1.005%.

C)      2.012%.

Q12. The 90-day $/Euro forward rate is 0.9420 $/Euro. Given a forward premium of 0.0027 $/Euro, what is the annualized percentage forward discount or premium for the Euro?

A)   1.146%.

B)   11.500%.

C)   1.150%.

Q13. The spot and 30-day forward rates for the Australian dollar (AUD) are USD0.3075 and USD0.3120, respectively. The AUD is selling at a forward:

A)   rate of USD0.3075.

B)   premium of USD0.0045.

C)   discount of USD0.0045.

答案和详解如下：

Q10. Isaac Long is an English investor. He notices the 90–day forward rate for the Norwegian kroner is GBP0.0859 and the spot rate is GBP0.0887. Long calculates the annualized rate of the kroner to be trading at a:

A)   premium of 9.478%.

B)   premium of 21.17%.

C)   discount of 12.63%.

Correct answer is C)

[(forward rate − spot rate) / spot rate] × (360 / number of forward contract days) = [(0.0859 − 0.0887) / 0.0887] × (360 / 90) = −0.1263 or −12.63%.

Q11. Today, the spot rate on pounds sterling is $0.6960 and 90-day forward pounds are priced at $0.6925. The annualized forward discount is:

A)      2.022%.

B)      1.005%.

C)      2.012%.

Correct answer is C)

Forward discount = ($0.6925 − $0.6960) / $0.6960 × (360 / 90) = -0.02012

Q12. The 90-day $/Euro forward rate is 0.9420 $/Euro. Given a forward premium of 0.0027 $/Euro, what is the annualized percentage forward discount or premium for the Euro?

A)   1.146%.

B)   11.500%.

C)   1.150%.

Correct answer is C)

Since we have a forward premium, we have to subtract it from the forward rate to get the spot rate of 0.9393 $/Euro. (Note that the $ is weaker in the forward market as it takes more dollars to buy one Euro.)

The annualized percentage forward premium = (0.0027 / 0.9393) × (360 / 90) × 100 = 1.150%

Q13. The spot and 30-day forward rates for the Australian dollar (AUD) are USD0.3075 and USD0.3120, respectively. The AUD is selling at a forward:

A)   rate of USD0.3075.

B)   premium of USD0.0045.

C)   discount of USD0.0045.

Correct answer is B)

USD0.3120 – USD0.3075 = USD0.0045 premium.