On 20th March, 2019 in the interbank market the US Dollar is quoted as under: Spot US Dollar 1 = ₹ 42.4000/4200 Spot/April 2000/2100 Spot/May 3500/3600 Your Exporter Customer wants to know the Selling and Buying rates fo

CS Professional · Banking - Law & Practice · PYQS · December 2020
On 20th March, 2019 in the interbank market the US Dollar is quoted as under: Spot US Dollar 1 = ₹ 42.4000/4200 Spot/April 2000/2100 Spot/May 3500/3600 Your Exporter Customer wants to know the Selling and Buying rates for: (a) Spot Delivery (b) Forward delivery April 2019 (c) Forward delivery May 2019.

Answer & Explanation:

The buying and selling rates will be as under: Buying Rate Selling Rate a) Spot Delivery US Dollar 1= ₹ 42.4000 ₹ 42.4200 b) Forward Delivery April, 2019 ₹ 42.6000 ₹ 42.6300 c) Forward Delivery May, 2019 ₹ 42.7500 ₹ 42.7800 Working Note: Buying Rate Selling Rate April May April May Spot Rate 42.4000 42.4000 42.4200 42.4200 Add: Premium 0.2000 0.3500 0.2100 0.3600 Forward rates 42.6000 42.7500 42.6300 42.7800

Topics: Foreign Exchange

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