Answer and Explanation:
The quote above shows the spot bid rate, spot ask rate, swap bid rate and swap ask rate
The spot price is the price of an asset or security that is based on its immediate delivery
The spot bid rate is the buyback price of the security
The spot ask rate is the selling price of the security
The swap rate is the rate at which fixed interest payments is traded with floating payments
The swap bid rate is the buyback rate
The swap ask rate is the selling price
From the question,
Given:
Spot ask rate = 0.1168
Spot bid rate =0.1160
Swap ask rate= 0.0006
Swap bid rate =0.0004
To calculate Outright 30 day forward quote for franc:
Outright 30 day forward bid rate = spot bid rate + swap bid rate
We substitute :
Outright 30 day forward bid rate=0.1160+0.0004=0.1164
Outright 30 day forward ask rate =spot ask rate + swap ask rate
We substitute:
Outright 30 day forward ask rate =0.1168+0.0006= 0.1174
Outright 30 day forward quote for franc= 0.1164-74