Spot Rate ((Forward Rates)) is 35.6000/6500 Forward 1M=3500/3000 2M=5500/3000, 3M=8500/8000, Transit

Spot Rate ((Forward Rates)) is 35.6000/6500 Forward 1M=3500/3000 2M=5500/3000, 3M=8500/8000, Transit Period ----20 days, Exchange Margin = 0.15%. Find Bill Buying Rate & 2 M Forward Buying Rate? Solution Spot Rate =35.6000 Less Forward Discount 1M = 00.3500 = 35.2500 Less Exchange Margin 0.15% =00.0529 (0.15% of 35.2500) = 35.1971 Is bill buying rate ----------------------------------------------------- Solution Forward Buying Rate will be applied. 20 days + 2M. Spot Rate = 35.6000 Less Forward Discount of 3M = 00.8500 Less Exchange Margin 0.15% = 00.0521 =34.6979.sir is question me ye kaise malum padhaa ki forward rate discount pe Hai?pls explain

 

If offer rate is less than bid rate in respective forwards then the currency is in discount and if offer rate is higher than bid currency is in premium

 

it is easy to understand jaise ki When the forward margin are given in descending order (i.e. 3500/3000 ), it means that the forward is at discount

 

Thanks.which forward margin is to be added or deducted while calculating forward rate?

 

Yaa but I want to know higher margin or lower margin which should be deducted?