Question

Restate the following one-, three-, and six-month outright forward European term bid-ask quotes in forward points.

Answer 1

The bid-ask quotes can be restated in forward points as follows: 1-month: Bid 6.5-7.0, Ask 7.5-8.0; 3-month: Bid 8.5-9.0, Ask 9.5; 6-month: Bid 9.5, Ask not provided.

Step-by-step explanation:

The one-month outright forward European term bid-ask quotes can be restated in forward points as follows:

• Bid: 6.5 - 7.0
• Ask: 7.5 - 8.0

The three-month outright forward European term bid-ask quotes can be restated in forward points as:

• Bid: 8.5 - 9.0
• Ask: 9.5

The six-month outright forward European term bid-ask quotes can be restated in forward points as:

• Bid: 9.5
• Ask: Not provided