WebAug 10, 2024 · #3 Forward Rate. The forward rate shot to fame with the forward contract. Well, both these terms are strongly related to one another. ... The spot rate represents the … Weba. $45 million b. $20 million c. €45 million d. €20 million. Apple is selling 30,000 units in Europe at an average price of €1,500 per unit. Both the spot and forward exchange rates are $1.20/€. The cost of each unit in dollars is $1,300 per unit. The elasticity of demand for Apple computers in Europe is € = 1.5.
Forward Rate: Definition, Uses, and Calculations
WebQuestion: Suppose the spot exchange rate is $.05 per rand. the forward exchange rate is $0.45 per rand. interest rates in the US are 10% interest rates in South Africa are 18%. A) based on the spot and forward rate, is the rand expected to appreciate or depreciate_____ B) and use the following to find the answers below (F-R/R)+i*=i foreign currency appreciation … WebFinance. Finance questions and answers. Dell is selling 30,000 units in Europe at an average price of €1,500 per unit. Both the spot and forward exchange rates are $1.20/€. The cost of each unit in dollars is $1,300 per unit. The elasticity of demand for Dell computers in Europe is ε = 1.5. Now consider a depreciation of Euro (relative to ... chat gpt for google edge
Spot and Forward Exchange Rates Explained in 5 Minutes
WebForward exchange rates are quoted in terms of points to be added to the spot exchange rate. If the points are positive (negative), the base currency is trading at a forward premium (discount). The points are proportional to the interest rate differential and approximately proportional to the time to maturity. WebThe spot exchange rate offers adaptability and up-to-the-minute pricing, while the forward exchange rate provides stability and safeguards against currency value fluctuations. Market demand and supply, trading activities, and bid-ask spread are the three important trends determining the spot price. Web2 days ago · Access EUR/USD forex overnight, spot, tomorrow, and 1-week to 10-years forward rates chatgpt for google edge怎么使用