Foreign Exchange Quotations and Forward Exchange Rates

Implicit Exchange Rate Quotations

Question 1     

Suppose you are foreign exchange dealer/investor. You see on your Bloomberg’s screen that the euro is quoted as US$:€  0.84610–0.84650, and the Australian dollar is quoted as US$:A$  1.3875–1.3885. What is the implicit €:A$ quotation?

Question 2   

The following are the bid–ask quotes for spot exchange rate and interest rates:
        Spot exchange rate:
    USD:CHF:            1.3300 –1.3340
        Interest rates:
    One-month CHF:         21/2 – 25/8
    One-year CHF:        31/4 – 31/2
    One-month USD:        51/8 –51/4
    One-year USD:        51/2 – 53/4
        What are the quotations for the one-month and one-year USD:CHF forward exchange rates?