On April 3, 2016, a Bank quotes the following:
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In a spot transaction, delivery is made after two days.
Assume spot date as April 5, 2016.
Assume 1 swap point = 0.0001,
You are required to:
- Ascertain swap points for 2 months and 15 days. (For June 20, 2016),
- Determine foreign exchange rate for June 20, 2016, and
- Compute the annual rate of premium/discount of US$ on INR, on an average rate.
Solution
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