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The Bid-Ask Rates Are as Follows

Question 8

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The bid-ask rates are as follows:
Spot exchange rate:
CHF/USD: 1.5500-1.5540
Interest rates:
One-month CHF 31/2 - 5/8
One-year CHF 41/4 - 1/2
One-month USD 61/8 - 1/4
One-year USD 61/2 - 3/4
What are the quotations for the one-month and one-year CHF/USD forward exchange rates?

Correct Answer:

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a. The bid one-month forward exchange ra...

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