You are quoted the following rates: Spot GBP/CHF 1.4535-45 3M GBP/CHF swap 22/19 At what rate can you sell GBP against CHF outright 3-month?
A) 1.4523
B) 1.4526
C) 1.4513
D) 1.4516

Question

You are quoted the following rates: Spot GBP/CHF       1.4535-45 3M GBP/CHF swap     22/19 At what rate can you sell GBP against CHF outright 3-month?
A) 1.4523
B) 1.4526
C) 1.4513
D) 1.4516

Quizplus · Accepted Answer

To calculate the outright rate of selling GBP against CHF 3 months forward, we need to add the forward points to the spot rate. As the 3M GBP/CHF swap points are quoted as 22/19, we need to take the difference between the bid and ask forward points, which is 3 points in the bid direction (i.e., we subtract 3 from the spot rate to get the outright rate). Therefore, the outright rate of selling GBP against CHF 3 months forward is 1.4535 - 0.003 = 1.4505. As the question asks for the nearest quote, the answer is 1.4513 (the closest quote below 1.4505).

You Are Quoted the Following Rates: Spot GBP/CHF 1