Forward = Spot +Swap points

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# Forward = Spot +Swap points - PowerPoint PPT Presentation

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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## PowerPoint Slideshow about 'Forward = Spot +Swap points' - keaton

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Presentation Transcript

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

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

Bid price=4.1653

The company will open a new forward to April 19

The forward rate= The spot of the sell + swap points

4.1758= Fwd=4.1653+0.0105

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Cross rate - Example

Spot ILS/USD 4.1653/753

Spot USD/EUR 0.8946/51

Spot ILS/EUR 3.726/37

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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

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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

Cross rate

A company wants to buy a forward on the Euro/ILS

2 choices:

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3.745 , Buy a Euro forward /ILS

0.8952 , Buy a Euro forward /USD

4.1858 , Buy a USD forward /ILS

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