Forward rateForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Forward rateThis topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts November 23, 2014 at 12:01 pm #212386 sikha4MemberTopics: 26Replies: 7☆The current sppot rate for the US$ against the pound is $ to pound is 1,8420 Interest in the US is 5%pa where as it is 4%pa in the UK, what would you exoect the 3month forward rate to be November 23, 2014 at 1:42 pm #212406 John MoffatKeymasterTopics: 57Replies: 54744☆☆☆☆☆You use the interest rate party formula on the formula sheet.So = 1.8420 Hc = 0.05 x 3/12 = 0.0125 Hb = 0.04 x 3/12 = 0.01So Fo = 1.8420 x 1.0125/1.01 = 1.8466AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In