Explanation:
To calculate the 6-month forward bid rate for EUR/GBP:
Since the forward points are negative (-85/-83), we subtract them from the spot rates. The bid rate uses the bid forward points (-85), so:
1.1520 - 0.0085 = 1.1435
Therefore, the 6-month forward bid rate is closest to 1.1435.
Ultimate access to all questions.
No comments yet.
The spot rates and forward points for the EUR/GBP are as follows:
Note: EUR/GBP is the amount of EUR per 1 GBP.
The 6-month forward bid rate for EUR/GBP is closest to:
A
1.1435
B
1.1437
C
1.1447