Restate the following one-,three-,and six-month outright forward American term bid-ask quotes in forward points: $$\begin{array} { | c | c | c | c | c | }
\hline S ( \$ / S F I ) & = & 0.8500 & - & 0.8505 \
\hline F _ { 1 } ( \$ / S F I ) & = & 0.8505 & - & 0.8505 \
\hline F _ {3 } ( \$ / S F I ) & = & 0.8510 & - & 0.8520 \
\hline F _ { 6 } ( \$ / S F I ) & = & 0.8515 & - & 0.8530 \
\hline
\end{array}$$

Question

Restate the following one-,three-,and six-month outright forward American term bid-ask quotes in forward points: $$\begin{array} { | c | c | c | c | c | } 
\hline S ( \$ / S F I ) & = & 0.8500 & - & 0.8505 \
\hline F _ { 1 } ( \$ / S F I ) & = & 0.8505 & - & 0.8505 \
\hline F _ {3 } ( \$ / S F I ) & = & 0.8510 & - & 0.8520 \
\hline F _ { 6 } ( \$ / S F I ) & = & 0.8515 & - & 0.8530 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Forward points are calculated as the difference between the forward rate and the spot rate, multiplied by 10,000 (to convert to points). For the one-month forward, the bid and ask rates are the same as the spot rates, resulting in 0 points difference. For the three-month forward, the difference is 10 points for the bid and 15 points for the ask. For the six-month forward, the difference is 15 points for the bid and 25 points for the ask.

Restate the Following One-,Three-,And Six-Month Outright Forward American Term Bid-Ask