The $/CD spot bid-ask rates are $0.7560-$0.7625. The 3-month forward points are 12-16. Determine the $/CD 3-month forward bid-ask rates.

Question

Quizplus · Accepted Answer

To calculate the 3-month forward bid-ask rates, we need to add the forward points to the current spot bid-ask rates:

- For the forward bid rate: $0.7560 + 0.0012 = $0.7572
- For the forward ask rate: $0.7625 + 0.0016 = $0.7641

Therefore, the 3-month forward bid-ask rates are $0.7572-$0.7641, which is answer choice B.

The $/CD Spot Bid-Ask Rates Are $0