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What is the 6-month forward fx rate

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Reference no: EM131026303

The spot rate for British Pound (GBP) into South African Rand (ZAR) is 14.06 ZAR/GBP. 6-month interest rates in the UK are 0.75% and 6-month interest rates in South Africa are 5.5%. Assume rates are of the form

  1. Would you expect that the forward FX rate to be higher or lower than today?
  2. What is the 6-month forward FX rate?
  3. What is the quote for the 6-month forward point?

Reference no: EM131026303

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