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how did we know the unexpired basis months as nowhere the dates have been given
also why is the predicted lock in rate added here when in question gogarth it was subtracted
why are we taking the higher spot rate here since its not $ to CHF arent we supposed to take the lower rate
We do not need dates because the transaction is in 4 months time and we know the futures prices for futures maturing in 3 months time and in 4 months time.
The futures prices and the current spot rates must converge towards zero, and therefore the lock-in rate is always between the two. That determines whether we add or subtract.
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