Premium or Discount

AFM

Sir here given that 1) AUD USD, Spot 0.7100/0.7300 and 2 months forward is 25/30 2) AUD YEN, Spot 79.0900/79.2000 and 2 months forward is 55/50 In first case forward rate Bid(25) < Ask(30) hence Premium In second case forward rate Bid(55) > Ask(50) hence Discount Is my understanding correct sir? [Video Time Stamp: 21:24] Video Details ------------- Advanced Financial Management - AFM Foreign Exchange Exposure and Risk Management #78. Illustration # 33 - Investment / Forex decision

G Chandrakanta

CA Final

★ 15K+

02-Apr-26 13:06

Answers (1)

Yea

Sriram Somayajula

Admin

02-Apr-26 13:20