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February 8th, 2014, 12:22 PM  #1 
Newbie Joined: Feb 2014 Posts: 1 Thanks: 0  FRA & FX pricing and valuation
I have been trying to figure out this problem for the past 2 days but I am having trouble understanding which dates/rates to use and which formula to use for an foreign exchange FRA. as well as if and how you incorporate the fx rates in table one. I have seen FRA problems and currency forward problems in my CFA text book but nothing combining the two together. any help or input is greatly appreciated. I two attachmments included in this post are the questions and the rates. Im primarily concerned with solving question A but any input on questioned B or C would be great. [attachment=1:384c5dwu]Screen Shot 20140208 at 1.35.03 PM.png[/attachment:384c5dwu] [attachment=1:384c5dwu]Screen Shot 20140208 at 1.35.03 PM.png[/attachment:384c5dwu] 

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fra, pricing, valuation 
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