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Forward = Spot +Swap points

Example ILS/USD. Forward = Spot +Swap points. Spot rate = 4.1653/4.1753 Swap points 1 M = 84/105 Forward rate 1M =4.1737/4.1858 . Roll over a Forward. Getting the same spot rate for the close of the previous forward and for the opening of the new one and adding the swap points for 1 month.

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Forward = Spot +Swap points

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  1. Example ILS/USD Forward = Spot +Swap points Spot rate = 4.1653/4.1753 Swap points 1 M = 84/105 Forward rate 1M =4.1737/4.1858

  2. Roll over a Forward Getting the same spot rate for the close of the previous forward and for the opening of the new one and adding the swap points for 1 month

  3. On January 1st. A company bought a forward contract on the USD/ILS to March 19. On March 19 the company decided to roll over the forward to April 19. Example The company will sell the $ at the spot Bid price=4.1653 The company will open a new forward to April 19 The forward rate= The spot of the sell + swap points 4.1758= Fwd=4.1653+0.0105 * *

  4. Cross rate - Example Spot ILS/USD 4.1653/753 Spot USD/EUR 0.8946/51 Spot ILS/EUR 3.726/37 * Swap points 1 M ILS/USD = 84/105 Swap points 1 M USD/EUR = -0.14/1.57 Swap points 1 M ILS/EUR = 72.52/89.59 * Forward rate 1 M ILS/USD = 4.1737/858 Forward rate 1 M USD/EUR =0.8946/52 Forward rate 1 M ILS/EUR = 3.733/45

  5. Cross rate A company wants to buy a forward on the Euro/ILS 2 choices: * 3.745 , Buy a Euro forward /ILS 0.8952 , Buy a Euro forward /USD 4.1858 , Buy a USD forward /ILS * Buy Euro sell ILS = Sell ILS Buy USD, Sell USD Buy Euro 0.8952 *4.1858 =3.747

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