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Glsuni Mba 1820 If M2 P3 A
Glsuni Mba 1820 If M2 P3 A
Glsuni Mba 1820 If M2 P3 A
FX transactions
which are settled Thus, a spot contract entered
after 2 business days into on Monday will be settled on
from the date of the Wednesday, provided both
contract Tuesday and Wednesday are
working days in both the
(There can be “settlement” locations and the
exceptions e.g., CAD “dealing location” of the market-
is settled on T+1 making bank
basis against USD)
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0.065%
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Compute bid rate for the 2nd Compute bid rate for the 3rd
month option forward: month option forward:
INR/USD Spot = 68.8055/25 INR/GBP Spot = 85.7010/7240
1-m FP = 10/90 1-m Fwd. = -400/-150
2-m FP = 20/120 2-m Fwd. = -500/-200
3-m FP = 30/150 3-m Fwd. = -650/-300
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Illustration
Thus, in a swap deal, it
INR/EUR Spot = 77.5675/95
doesn’t really matter as to
3-m Swap Rate = -60/-25
what is the spot rate
Buy-Sell Swap: 77.5695/35
The net receivable/payable Sell-Buy Swap: 77.5675/50
in the combined deal is
determined using the swap i.e., due to forward discount, a buy-
rate and buy/sell rates are sell swap has larger loss of 60 points,
taken accordingly but a sell-buy swap has smaller gain
of 25 points
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