R12 FX Forward Revaluation Formula
Hello Oracle state the following formula
FX Forward rates
Forward Rate (bid) = Spot Rate, bid * (1 + (Interest Rate, quoted currency bid * Day Count) / (100*Annual Basis, quoted currency)) /
(1 + (Interest Rate, base currency offer * Day Count) / (100*annual basis, base currency))
Forward Rate (offer) = Spot Rate, offer * (1 + (Interest Rate, quoted currency offer * Day Count) / (100*Annual Basis, quoted currency)) /
(1 + (Interest Rate, base currency bid * Day Count) / (100*annual basis, base currency))
However according to CFA institute the formula :
Forward Exchange Rate
F_(P⁄B)=S_(P⁄B) ((1 + i_p [Actual/360])/(1 + i_B [Actual/360] ))
Forward discounts and premiums
F_(f∕d)-S_(f∕d)= S_(f∕d) ((i_(f )- i_d)/(1+i_d