Recall that forward exchange rates are not quoted with the same base as the spot exchange rates but rather as points that are multiplied by 1/10,000 then added to the spot exchange rate.

Since we are given the spot bid rate as 1.6432, then the 6-month forward bid rate is:

$`$1.64`32 + \frac{1}{10,000} \times 25.9 = 1.6432 + 0.00259 = 1.64579

**Option A is incorrect.** It contradicts C. **Options B is incorrect.** Given that the spot bid rate is 1.6432 and the spot ask rate is 1.7432, then the 6-month bid-ask spread is equal to: $`$1.74`32 + \frac{1}{10,000} \times 35.8 - 1.6432 + \frac{1}{10,000} \times 25.9 = 0.100990

Options D is incorrect. Given that the spot ask rate is 1.7432, then the 6-month exchange rate is

$`$1.74`32 + \frac{1}{10,000} \times 35.8 = 1.74678

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