Question 26 currency exchange rates

Hello guys,

I hope you can help me about the question 26 of currency exchange rates.

The objective is calculate de mark-to-market value. The only thing i do not understand is how they know the forward points that is - 0.0016.

The information given is the following USD/CHF quotes are currently available in the market:

Spot 1.0301/1.0302

30 days 1.033613

90 days 1.081081

180 days 1.061798

In this problem we entered into a 180-day forward contract 90 days ago.

So, I do not know how they have calculated the ( - 00.16) forward points with this information, that for me is different in relation to the others problems.

Thanks so much in advance!

You need to tell us what rate they sold the original forward contract at - assuming they sold since spot is below the 90 day forward price and the answer is negative.

Thanks for answering, the exercise is;

90 days ago, we entered into a 180-day forward contract to purchase 1 million CHF at an all-in rate of $1.0225/CHF.

The quotes USD/CHF currently available in the market:

Spot 1.0301/1.0302

30 days 1.033613

90 days 1.081081

180 days 1.061798

Interest rate:

90day CHF 1.02%

180day CHF 1.03%

90day USD 1%

180day USD 0.99%

This is all the information of the question. I dont understand why the forward all-in bid price is 1.0301 - (0.0016) = 1.0285

The (-0.0016) i dont know how they know it.

Thanks!

Is this ques from CFA topic tests or from some other source? I cud not find it in cfai text

This question is from scheweser qbank, part of economics, currency exchange rates, question 26