Example ILS/USD. Forward = Spot +Swap points. Spot rate = 4.1653/4.1753 Swap points 1 M = 84/105 Forward rate 1M =4.1737/4.1858 . Roll over a Forward. Getting the same spot rate for the close of the previous forward and for the opening of the new one and adding the swap points for 1 month.
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Getting the same spot rate for the close of the previous forward and for the opening of the new one and adding the swap points for 1 month
On January 1st. A company bought a forward contract on the USD/ILS to March 19.
On March 19 the company decided to roll over the forward to April 19.Example
The company will sell the $ at the spot
The company will open a new forward to April 19
The forward rate= The spot of the sell + swap points
Spot ILS/USD 4.1653/753
Spot USD/EUR 0.8946/51
Spot ILS/EUR 3.726/37
Swap points 1 M ILS/USD = 84/105
Swap points 1 M USD/EUR = -0.14/1.57
Swap points 1 M ILS/EUR = 72.52/89.59
Forward rate 1 M ILS/USD = 4.1737/858
Forward rate 1 M USD/EUR =0.8946/52
Forward rate 1 M ILS/EUR = 3.733/45
A company wants to buy a forward on the Euro/ILS
3.745 , Buy a Euro forward /ILS
0.8952 , Buy a Euro forward /USD
4.1858 , Buy a USD forward /ILS
Buy Euro sell ILS = Sell ILS Buy USD, Sell USD Buy Euro
0.8952 *4.1858 =3.747