A bank enters into a forward purchase TT covering an export bill for Swiss Francs 1,00,000 at * 32.4000 due 25th April a

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A bank enters into a forward purchase TT covering an export bill for Swiss Francs 1,00,000 at * 32.4000 due 25th April a

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A Bank Enters Into A Forward Purchase Tt Covering An Export Bill For Swiss Francs 1 00 000 At 32 4000 Due 25th April A 1
A Bank Enters Into A Forward Purchase Tt Covering An Export Bill For Swiss Francs 1 00 000 At 32 4000 Due 25th April A 1 (75.04 KiB) Viewed 40 times
A bank enters into a forward purchase TT covering an export bill for Swiss Francs 1,00,000 at * 32.4000 due 25th April and covered itself for same delivery in the local inter bank market at 32.4200. However, on 25th March, exporter sought for cancellation of the contract as the tenor of the bill is changed. In Singapore market, Swiss Francs were quoted against dollars as under: Spot USD 1 = Sw. Fcs. 1.5076/1.5120 One month forward 1.5150/ 1.5160 Two months forward 1.5250 / 1.5270 Three months forward 1.5415/ 1.5445 and in the interbank market US dollars were quoted as under: Spot USD 1 = 49.43021.4455 Spot / April 4100/.4200 Spot/May .4300/.4400 Spot/June 4500/.4600 Calculate the cancellation charges, payable by the customer if exchange margin required by the bank is 0.10% on buying and selling.
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