Spot Rate - 35.6000/6500 Forward 1M=3500/3000 2M=5500/3000 3M=8500/8000 Transit Period - 20 days.

Spot Rate - 35.6000/6500 Forward 1M=3500/3000 2M=5500/3000 3M=8500/8000 Transit Period - 20 days. Exchange Margin - 0.15%. Find 2 M Forward Buying Rate. a. 31.1971 b. 34.1971 c. 31.6976 d. 34.6976 Ans – d Explanation : Bcz, it is having Transit Period - 20 days and 2 M Forward, 3 Month Forward Buying Rate will be applied. 20 days + 2M. Spot Rate = 35.6000 Less Forward Discount of 3M (.8500) Less Exchange Margin (.0521) i.e. 35.6000-.8500-.0521(0.15% of 34.7500) = 34.6979 Ans.

 

Sir how could we know wheather it is in discount or premium from the question

 

I got it thank you i this as the buying is less than selling so it is in discount

 

.8500 less kyo kiya agar bill selling rate hota to kya add karte