|Author||Topic: Currency Forward Contract Question|
|CFA Text Book Question facts in summary;
Current Spot rate is $ 0.5972 per SF and payment is in 3 months. US interest Rate is 2% and 5% in Swiss. After 30 days entering in to a a Forward contract Spot is $ .55 per SF. Calculate value of contract now
Can someone give the answer on a step by step basis and the reason for each step in summary.