Payables and Cash Management - EBS (MOSC)

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R12 FX Forward Revaluation Formula

edited Aug 20, 2021 7:35AM in Payables and Cash Management - EBS (MOSC) 3 commentsAnswered ✓

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_(PB)=S_(PB) ((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

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