Suppose the following direct quotes are received for spot and one-month French francs in New York: .1260-684-6.Then the outright 30-day forward quote for the French is:

Question

Quizplus · Accepted Answer

To calculate the outright 30-day forward quote for French francs in New York, we need to add the points for one-month forward to the spot bid and ask prices.

For bid price: 
Spot bid price = 0.1260 
Points for one-month forward = -6 
Outright 30-day forward bid = 0.1260 - 0.0006 = 0.1254

For ask price: 
Spot ask price = 0.1268 
Points for one-month forward = +6 
Outright 30-day forward ask = 0.1268 + 0.0006 = 0.1274

Therefore, the outright 30-day forward quote for French francs is 0.1254-0.1274. The closest answer to this is B, which is 0.1264-0.1274.

Suppose the Following Direct Quotes Are Received for Spot and One-Month