SUGGESTED ANSWERS AND SOLUTIONS TO

• To calculate the annualized premium or discount of the ZAR against the CHF requires comparison of the spot selling exchange rate to the forward selling price of CHF for ZAR. Spot rate = 1.5343 CHF/6.2681 ZAR = 0.244779120. 30 day forward ask rate 1.5285 CHF/6.2538 ZAR = 0.244411398. The premium/discount formula is: ................
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