Answer to QUESTIONS 8 8 Question

The bid and ask rate for the spot rate and the forward rate is provided in the calculation, hence the question requires the calculation of the mid rates for the spot rate and the forward rate which is provided below, Step 1: Formula Spot Rate (Mid-Rate) = (Bid rate + Ask Rate)/2 Forward Rate (Mid-Rate) = (Bid rate + Ask Rate)/2 Step 2: Calculation of the profit rate which can be invested at the forward rate which has been quoted at the